-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Gjqoi9GFpMpUZ/PQnchpKgWSukbLFVabdMO1ydN/dvl1FX0AgUX+x4M1lsSDljEH RFkumWP54hNOI9NVj61eUg== 0000930413-01-500764.txt : 20010702 0000930413-01-500764.hdr.sgml : 20010702 ACCESSION NUMBER: 0000930413-01-500764 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010430 FILED AS OF DATE: 20010629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALGER FUND CENTRAL INDEX KEY: 0000003521 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-01355 FILM NUMBER: 1671042 BUSINESS ADDRESS: STREET 1: 75 MAIDEN LN CITY: NEW YORK STATE: NY ZIP: 10038 BUSINESS PHONE: 2128068800 N-30D 1 c20882-n30d.txt FORM N-30D FELLOW SHAREHOLDERS: May 14, 2001 Dramatic shifts in the U. S. economy have contributed to a difficult period for stock investors. The S&P 500, representing large-capitalization stocks, lost 12.07% during the six months ended April 30, 2001. Medium-sized companies fared somewhat better, with the S&P MidCap 400--representing 400 companies with an average market capitalization of $2 billion--losing 1.40% during the same period. Small-capitalization growth companies, represented by the Russell 2000 Growth Index, fell 17.34%. Underlying the market's volatility and overall weakness is the dramatic slowdown in the economy. Gross domestic product (GDP) grew a mere 1% in the fourth quarter of 2000 and an estimated 2% for the quarter ended March 31, 2001. By comparison, the fourth quarter GDP growth in 1999 was 8.3%. In this environment, a large number of companies reported lower-than-expected quarterly earnings and the 12-month earnings outlook for S&P 500 companies was revised downwards. The downward earnings revisions caused stock prices to fall. Growth stocks, which typically trade at higher price-to-earnings ratios compared to the market average, suffered the greatest declines. For example, the Russell 2000 Growth Index total return was -26.36% for the five months ended March 31st, compared to -8.89% for the broader-based Russell 2000 Index. Declines in high-growth emerging technology and Internet stocks were further exacerbated by a cyclical downturn in the technology sector, reflected in the 45.39% drop in the NASDAQ Composite during the same five month period. Investor uncertainty about whether the economy might slip into a recession--and whether or not the Federal Reserve was acting aggressively enough to engineer a "soft" landing--was another factor affecting the market's extreme volatility in recent months. Higher energy prices and the ongoing energy crisis in California may also have contributed to the market's decline during the first three months of the year. During the winter months, natural gas prices had risen nearly three-fold compared to a year earlier, acting as a tax on consumer spending. A BRIGHTER OUTLOOK AHEAD The economic picture in early April was not considerably brighter than it was at the start of the year. The employment report released on April 6 showed a net loss in jobs for the first time since the start of this current slowdown. On the same day, California's largest electric utility, Pacific Gas & Electric, filed for bankruptcy. However, most market indexes recovered ground during the month. The S&P 500 rose 7.77% in April, while the Russell 2000 Growth Index gained 12.24%. Several factors contributed to the market's rebound. First, the 2% GDP growth recorded in the first quarter was stronger than the 0% to 1% growth rate that many observers had been expecting. While later revisions may push this figure lower, the report suggested that the U. S. economy was not as weak as some had envisioned. A second factor is that the Federal Reserve's aggressive easing of monetary policy will likely result in stronger economic activity in the second half of the year. Since the beginning of the year, the Federal Open Market Committee ("FOMC") has lowered short-term interest rates a full 2%. The most recent rate cut in late April, had a direct effect on the stock market and may indicate a new willingness by the Federal Reserve to recognize the importance of stable financial markets to the economic recovery. Equally important, the passage of proposed tax legislation would be favorable for the economy. At the end of April, both the House and the Senate passed tax bills that provide a substantial portion of President Bush's requested tax relief, paving the way for a compromise resolution of between $1.2 trillion and $1.6 trillion, including retroactive tax cuts for this year. The fixed-income markets appear to be pricing in stronger growth in the second half of the year, evidenced by the recent increase in yields on long-term bonds, which rose to 5.75% at the end of April. The yield relationship between short-term and long-term bonds has now reverted to the "normal" pattern. - -------------------------------------------------------------------------------- LOOKING AHEAD In selecting individual securities, Fred Alger Management, Inc. focuses on companies with strong fundamentals that offer significant price appreciation potential. We believe that the current environment of lower interest rates combined with favorable fiscal policies will result in a reacceleration in corporate earnings during the latter part of 2001, with technology stocks potentially improving somewhat later in this period. We believe that our two-pronged approach to investment selection, combining bottom-up analysis of individual companies with a top-down evaluation of macro-economic factors, helps position our investment portfolios to weather market and economic cycles while continuing to provide exposure to opportunities for long-term capital appreciation. Respectfully submitted, /s/ DAVID D. ALGER ----------------------- David D. Alger President - -------------------------------------------------------------------------------- TABLE OF CONTENTS - -------------------------------------------------------------------------------- Alger LargeCap Growth Portfolio: Schedule of Investments ................................. 4 Financial Highlights .................................... 6 Alger Small Capitalization Portfolio: Schedule of Investments ................................. 8 Financial Highlights .................................... 12 Alger Balanced Portfolio: Schedule of Investments ................................. 14 Financial Highlights .................................... 18 Alger MidCap Growth Portfolio: Schedule of Investments ................................. 20 Financial Highlights .................................... 22 Alger Capital Appreciation Portfolio: Schedule of Investments ................................. 24 Financial Highlights .................................... 26 Alger Money Market Portfolio: Schedule of Investments ................................. 28 Financial Highlights .................................... 29 Statements of Assets and Liabilities ...................................... 30 Statements of Operations .................................................. 31 Statements of Changes in Net Assets ....................................... 32 Notes to Financial Statements ............................................. 34 THE ALGER FUND -4- ALGER LARGECAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2001 COMMON STOCKS--94.6% SHARES VALUE ------ ----- ADVERTISING--.9% Omnicom Group Inc.+ ................................ 118,500 $ 10,410,225 ------------ AEROSPACE--2.8% General Dynamics Corporation ....................... 172,600 13,304,007 United Technologies Corporation .................... 238,850 18,649,408 ------------ 31,953,415 ------------ AUTOMOTIVE--.2% Harley-Davidson, Inc.+ ............................. 56,650 2,610,999 ------------ BIO-TECHNOLOGY RESEARCH & PRODUCTION--3.1% Amgen Inc.* ........................................ 575,500 35,186,070 ------------ CABLE--1.1% Comcast Corp., Cl. A Special* ...................... 284,200 12,479,222 ------------ COMMUNICATION SERVICES--.9% SBC Communications Inc. ............................ 232,100 9,574,125 ------------ COMMUNICATION EQUIPMENT----2.0% Cisco Systems, Inc.* ............................... 1,224,000 20,783,520 Corning Incorporated ............................... 100,000 2,197,000 ------------ 22,980,520 ------------ COMMUNICATIONS TECHNOLOGY--5.0% AOL Time Warner Inc.* .............................. 541,525 27,347,013 Nokia Corporation, ADR ............................. 865,700 29,598,283 ------------ 56,945,296 ------------ COMPUTER RELATED & BUSINESS EQUIPMENT--7.2% Dell Computer Corporation* ......................... 881,650 23,134,496 EMC Corporation* ................................... 642,500 25,443,000 Sun Microsystems, Inc.* ............................ 1,953,400 33,442,208 ------------ 82,019,704 ------------ COMPUTER SERVICES--2.7% eBay Inc.*+ ........................................ 594,000 29,985,120 ------------ COMPUTER SOFTWARE--2.7% Intuit Inc.* ....................................... 203,000 6,504,120 Microsoft Corporation* ............................. 347,000 23,509,250 ------------ 30,013,370 ------------ CONGLOMERATE--6.9% General Electric Company ........................... 766,040 37,175,921 Tyco International Ltd. ............................ 767,200 40,945,464 ------------ 78,121,385 ------------ ENERGY & ENERGY SERVICES--10.6% BJ Services Company * .............................. 218,700 17,988,075 Calpine Corporation * .............................. 207,800 11,842,522 Duke Energy Corporation ............................ 241,100 11,273,836 Halliburton Company+ ............................... 623,900 26,958,719 Nabors Industries, Inc.* ........................... 298,350 17,787,627 Smith International, Inc.*+ ........................ 73,250 5,947,168 Transocean Sedco Forex Inc. ........................ 527,200 28,616,415 ------------ 120,414,362 ------------ FINANCIAL SERVICES--8.4% Citigroup Inc. ..................................... 719,633 35,369,962 Marsh & McLennan Companies, Inc. .................................. 184,300 17,773,892 Merrill Lynch & Co., Inc. .......................... 360,000 22,212,000 Schwab (Charles) Corporation (The) ................. 435,975 8,632,305 Stilwell Financial, Inc. ........................... 371,400 10,945,158 ------------ 94,933,317 ------------ FOOD & BEVERAGES--2.9% Philip Morris Companies Inc. ....................... 649,300 32,536,423 ------------ FOOD CHAINS--2.8% Kroger Co. (The)* .................................. 322,900 7,294,311 Safeway Inc.* ...................................... 453,500 24,625,050 ------------ 31,919,361 ------------ HEALTH CARE ADMINISTRATIVE SERVICES--4.0% Cardinal Health, Inc.+ ............................. 663,700 44,733,380 ------------ INDUSTRIAL EQUIPMENT--1.0% Waters Corporation* ................................ 208,900 10,904,580 ------------ INSURANCE--2.8% American International Group, Inc. ................. 384,800 31,476,640 ------------ MANUFACTURING--2.0% Sanmina Corporation*+ .............................. 322,200 9,392,130 Solectron Corporation* ............................. 541,800 13,788,810 ------------ 23,180,940 ------------ MEDIA--1.0% Viacom Inc. Cl. B* ................................. 219,400 11,421,964 ------------ MEDICAL DEVICES--.5% Guidant Corporation*+ .............................. 138,300 5,670,300 ------------ MEDICAL SERVICES--1.3% Tenet Healthcare Corporation* ...................... 323,950 14,461,128 ------------ OIL & GAS--2.8% Exxon Mobil Corporation ............................ 355,950 31,537,170 ------------ THE ALGER FUND -5- ALGER LARGECAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 2001 COMMON STOCKS--(CONT.) SHARES VALUE ------ ----- PHARMACEUTICALS--10.1% Abbott Laboratories ............................. 227,900 $ 10,570,002 American Home Products Corporation ................................... 594,364 34,324,521 Baxter International Inc. ....................... 305,400 27,837,210 Forest Laboratories, Inc. * ..................... 47,800 2,922,970 Pfizer Inc. ..................................... 892,275 38,635,508 -------------- 114,290,211 -------------- RETAIL--8.9% Best Buy Co., Inc.* ............................. 249,000 13,707,450 Home Depot, Inc. ................................ 796,900 37,533,990 Target Corporation .............................. 228,700 8,793,515 Walgreen Co. .................................... 198,750 8,502,525 Wal-Mart Stores, Inc. ........................... 622,950 32,231,433 -------------- 100,768,913 -------------- Total Common Stocks (Cost $1,046,643,525) ......................... 1,070,528,140 -------------- Principal Short-Term Investments--6.6% Amount --------- U.S. Government & Agency Obligations--4.7% Federal Home Loan Banks, 4.50%, 5/1/01 (Cost $53,400,000) ........................... $ 53,400,000 53,400,000 -------------- OTHER SHORT-TERM INVESTMENTS--1.9% SHARES ------ Securities Lending Quality Trust (Cost $21,093,157)(b) ........................ 21,093,157 21,093,157 -------------- Total Short-Term Investments (Cost $74,493,157) ........................... 74,493,157 -------------- Total Investments (Cost $1,121,136,682)(a) ..................... 101.2% 1,145,021,297 Liabilities in Excess of Other Assets .......... (1.2) (13,324,816) ----- -------------- Net Assets ..................................... 100.0% $1,131,696,481 ===== ============== * Non-income producing security. + Securities partially or fully on loan. (a) At April 30, 2001, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $1,121,136,682, amounted to $23,884,615 which consisted of aggregate gross unrealized appreciation of $112,584,106 and aggregate gross unrealized depreciation of $88,699,491. (b) Represents investment of cash collateral received for securities on loan. See Notes to Financial Statements. THE ALGER FUND -6- ALGER LARGECAP GROWTH PORTFOLIO (i) Financial Highlights For a share outstanding throughout the period
Class A (ii) --------------------------------------------------------------------- ---------- Six Months Year Ended October 31, Ten Months Six Months Ended -------------------------------------- Ended Ended April 30, October 31, April 30, 2001(iv)(vii) 2000 1999 1998 1997(iv) 2001(iv)(vii) ---------- -------- -------- -------- -------- ---------- Net asset value, beginning of period .. $ 14.09 $ 15.47 $ 12.19 $ 11.58 $ 9.40 $ 13.58 -------- -------- -------- -------- -------- -------- Net investment income (loss) .......... (.01)(v) (.05)(v) (.07)(v) (.03)(v) (.02) (.06)(v) Net realized and unrealized gain (loss) on investments ...................... (1.57) 1.33 4.64 2.13 2.20 (1.51) -------- -------- -------- -------- -------- -------- Total from investment operations ...... (1.58) 1.28 4.57 2.10 2.18 (1.57) Distributions from net realized gains . (.94) (2.66) (1.29) (1.49) -- (.94) -------- -------- -------- -------- -------- -------- Net asset value, end of period ........ $ 11.57 $ 14.09 $ 15.47 $ 12.19 $ 11.58 $ 11.07 ======== ======== ======== ======== ======== ======== Total Return (vi) ..................... (11.3%) 8.0% 40.4% 21.4% 23.2% (11.7%) ======== ======== ======== ======== ======== ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted) ................... $283,865 $324,130 $228,896 $121,930 $ 52,307 $785,073 ======== ======== ======== ======== ======== ======== Ratio of expenses to average net assets ........................ 1.27% 1.20% 1.21% 1.25% 1.30% 2.02% ======== ======== ======== ======== ======== ======== Ratio of net investment income (loss) to average net assets ............. (.25%) (.32%) (.50%) (.23%) (.39%) (.99%) ======== ======== ======== ======== ======== ======== Portfolio Turnover Rate ............. 46.50% 96.13% 205.94% 146.64% 128.26% 46.50% ======== ======== ======== ======== ======== ========
(i) Prior to September 29, 2000 the Alger LargeCap Growth Portfolio was the Alger Growth Portfolio. (ii) Initially offered January 1, 1997. (iii) Initially offered August 1, 1997. (iv) Ratios have been annualized; total return has not been annualized. (v) Amount was computed based on average shares outstanding during the period. (vi) Does not reflect the effect of any sales charges. (vii) Unaudited. See Notes to Financial Statements. -7-
Class B Class C (iii) - ------------------------------------------------- -------------------------------------------------------------- Year Ended October 31, Six Months Three Months - ------------------------------------------------- Ended Year Ended October 31, Ended April 30, ----------------------------------- October 31, 2000 1999 1998 1997 1996 2001(iv)(vii) 2000 1999 1998 1997(iv) - -------- -------- -------- -------- -------- ------- ------- ------- ------- ------- $ 15.09 $ 12.00 $ 11.50 $ 9.49 $ 9.38 $ 13.57 $ 15.08 $ 12.00 $ 11.50 $ 11.98 - -------- -------- -------- -------- -------- ------- ------- ------- ------- ------- (.16)(v) (.18)(v) (.11)(v) (.13) (.08)(v) (.06)(v) (.16)(v) (.18)(v) (.11)(v) (.02) 1.31 4.56 2.10 2.44 .78 (1.51) 1.31 4.55 2.10 (.46) - -------- -------- -------- -------- -------- ------- ------- ------- ------- ------- 1.15 4.38 1.99 2.31 .70 (1.57) 1.15 4.37 1.99 (.48) (2.66) (1.29) (1.49) (.30) (.59) (.94) (2.66) (1.29) (1.49) -- - -------- -------- -------- -------- -------- ------- ------- ------- ------- ------- $ 13.58 $ 15.09 $ 12.00 $ 11.50 $ 9.49 $ 11.06 $ 13.57 $ 15.08 $ 12.00 $ 11.50 ======== ======== ======== ======== ======== ======= ======= ======= ======= ======= 7.2% 39.3% 20.5% 24.9% 8.1% (11.7%) 7.2% 39.2% 20.5% (4.0%) ======== ======== ======== ======== ======== ======= ======= ======= ======= ======= $902,091 $770,311 $390,885 $304,984 $266,207 $62,758 $65,893 $31,500 $ 3,312 $ 199 ======== ======== ======== ======== ======== ======= ======= ======= ======= ======= 1.96% 1.96% 2.00% 2.08% 2.08% 2.02% 1.95% 1.97% 2.00% 2.02% ======== ======== ======== ======== ======== ======= ======= ======= ======= ======= (1.07%) (1.26%) (.98%) (1.13%) (.84%) (.99%) (1.08%) (1.30%) (.97%) (1.43%) ======== ======== ======== ======== ======== ======= ======= ======= ======= ======= 96.13% 205.94% 146.64% 128.26% 94.91% 46.50% 96.13% 205.94% 146.64% 128.26% ======== ======== ======== ======== ======== ======= ======= ======= ======= =======
THE ALGER FUND -8- ALGER SMALL CAPITALIZATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2001 COMMON STOCKS--90.7% Shares Value ------ ----- AIR TRANSPORT--1.1% EGL, Inc.* ............................... 32,900 $ 780,059 SkyWest, Inc. ............................ 82,800 2,194,200 ----------- 2,974,259 ----------- BANKS--1.2% Southwest Bancorporation of Texas, Inc.* ........................ 103,050 3,452,175 ----------- BIO-TECHNOLOGY RESEARCH & PRODUCTION--2.5% Albany Molecular Research, Inc.* ......... 34,300 1,081,479 Aviron* .................................. 37,900 1,865,059 Enzon, Inc.* ............................. 38,900 2,319,217 IDEC Pharmaceuticals Corporation * .......................... 37,100 1,825,320 ----------- 7,091,075 ----------- BUILDING & CONSTRUCTION--4.2% Dal-Tile International Inc.* ............. 140,350 2,091,215 D.R. Horton, Inc. ........................ 169,776 4,111,975 Lennar Corporation ....................... 49,000 2,144,730 NVR, Inc.* ............................... 4,545 866,367 Toll Brothers, Inc.* ..................... 73,500 2,609,250 ----------- 11,823,537 ----------- COMMERCIAL SERVICES--1.2% Corporate Executive Board Co.* ........... 99,000 3,290,760 ----------- COMMUNICATION EQUIPMENT--1.1% ONI Systems Corp.* ....................... 67,800 2,436,054 ----------- 3,174,929 ----------- COMMUNICATIONS TECHNOLOGY--1.4% Avocent Corporation* ..................... 51,100 1,271,879 Digital Lightwave, Inc.* ................. 60,600 2,551,260 ----------- 3,823,139 COMPUTER SERVICES--3.3% Exult Inc.*+ ............................. 264,300 2,418,345 Informatica Corporation* ................. 66,700 1,684,175 Micromuse Inc.* .......................... 69,350 3,432,825 Netegrity, Inc.* ......................... 44,350 1,773,557 ----------- 9,308,902 ----------- COMPUTER SOFTWARE--4.7% Advent Software, Inc.* ................... 26,000 1,455,480 Manugistics Group, Inc.* ................. 133,700 4,535,104 Mercury Interactive Corporation* ......... 48,700 3,221,505 Openwave Systems Inc.* ................... 118,700 4,108,207 ----------- 13,320,296 ----------- COMPUTER TECHNOLOGY--2.2% Flextronics International Ltd.* .......... 133,100 3,579,059 Research in Motion Limited*+ ............. 78,600 2,666,111 ----------- 6,245,170 ----------- CONSUMER PRODUCTS--1.9% Blyth Inc. ............................... 57,200 1,309,880 Church & Dwight Co. Inc. ................. 94,200 2,259,857 Furniture Brands International Inc.* ..... 74,550 1,690,049 ----------- 5,259,786 ----------- CONTAINERS--.1% Mobile Mini, Inc.* ....................... 10,100 298,960 ----------- DIVERSIFIED FINANCIAL SERVICES--1.1% BISYS Group, Inc. (The)* ................. 63,680 3,069,376 ----------- EDUCATION--3.9% Career Education Corporation* ............ 67,100 3,378,485 Corinthian Colleges, Inc.* ............... 111,000 4,551,000 Education Management Corporation ............................ 47,100 1,471,875 Strayer Education, Inc. .................. 34,700 1,446,990 ----------- 10,848,350 ----------- ELECTRONICS--2.9% DDi Corp.* ............................... 103,900 2,552,823 Keithley Instruments, Inc. ............... 62,100 1,648,755 Mettler-Toledo International Inc.* ....... 27,900 1,234,575 Plexus Corp.* ............................ 84,600 2,598,912 ----------- 8,035,065 ----------- ENERGY--2.4% Arch Coal, Inc. .......................... 36,400 1,126,580 FuelCell Energy, Inc.*+ .................. 22,140 1,525,446 Swift Energy Company* .................... 52,400 1,669,464 Veritas DGC Inc.* ........................ 72,300 2,349,750 ----------- 6,671,240 ENERGY & ENERGY SERVICES--4.8% Aquila, Inc.*+ ........................... 36,200 1,097,222 BJ Services Company * .................... 75,950 6,246,888 Horizon Offshore, Inc.* .................. 50,650 1,228,263 Smith International, Inc.* ............... 62,100 5,041,899 ----------- 13,614,272 ----------- FINANCIAL INFORMATION SERVICES--1.8% FactSet Research Systems Inc. ............ 143,700 5,101,350 ----------- THE ALGER FUND -9- ALGER SMALL CAPITALIZATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 2001 COMMON STOCKS--(CONT.) Shares Value ------ ----- FINANCIAL SERVICES--2.1% Boston Private Financial Holdings, Inc. .................... 41,700 $ 817,320 Investors Financial Services Corp. .. 45,900 3,283,686 NCO Group, Inc.* .................... 29,100 785,700 UCBH Holdings, Inc. ................. 40,100 1,107,562 ----------- 5,994,268 ----------- FOOD & BEVERAGES--.7% Constellation Brands, Inc.* ......... 29,900 1,950,975 ----------- HEALTH CARE--1.7% Express Scripts Inc. Cl. A* ......... 50,080 4,251,792 IMPATH Inc.* ........................ 19,700 616,215 ----------- 4,868,007 ----------- HEALTH CARE FACILITIES--3.7% Laboratory Corporation of America Holdings* .............. 56,600 7,980,600 LifePoint Hospitals, Inc.* .......... 67,000 2,326,240 ----------- 10,306,840 ----------- HEALTH CARE MANAGEMENT SERVICES--1.4% MID Atlantic Medical Services, Inc.* ................... 110,700 2,250,531 Orthodontic Centers of America, Inc.* ................. 67,095 1,828,339 ----------- 4,078,870 ----------- HOTELS--.6% Orient-Express Hotels Ltd. Cl. A*+ .. 91,250 1,551,250 ----------- INVESTMENT MANAGEMENT COMPANIES--3.4% Affiliated Managers Group, Inc.* .... 75,550 4,247,421 BlackRock, Inc. Cl. A* .............. 81,100 2,741,180 Federated Investors, Inc. Cl. B ..... 90,950 2,651,193 ----------- 9,639,794 ----------- LEISURE & ENTERTAINMENT--1.5% Bally Total Fitness Holding Corporation* ...................... 55,350 1,516,590 Callaway Golf Company ............... 116,350 2,822,651 ----------- 4,339,241 ----------- MACHINERY--OIL WELL EQUIPMENT & SERVICES--3.0% Patterson Energy, Inc.* ............. 113,330 3,906,485 UTI Energy Corp.* ................... 127,500 4,386,000 ----------- 8,292,485 ----------- MEDICAL & DENTAL INSTRUMENTS & SUPPLIES--1.2% Cytyc Corporation* .................. 146,700 3,454,785 ----------- MEDICAL DEVICES--.8% Inverness Medical Technology Inc.* .. 62,800 2,198,000 ----------- MEDICAL SERVICES--2.8% Accredo Health, Incorporated* ....... 47,400 1,614,444 Province Healthcare Company* ........ 123,350 3,160,227 RehabCare Group, Inc.* .............. 79,858 2,998,668 ----------- 7,773,339 ----------- MEDICAL TECHNOLOGY--.4% Cerner Corporation* ................. 25,000 1,125,750 ----------- METAL FABRICATING--2.5% Shaw Group Inc. (The)* .............. 122,550 6,985,350 ----------- OIL & GAS--4.2% Cabot Oil & Gas Corporation ......... 48,625 1,406,235 Cross Timbers Oil Company ........... 38,950 1,057,493 Grey Wolf, Inc.* .................... 383,350 2,453,440 Mitchell Energy & Development Corp. ................. 30,500 1,692,750 St. Mary Land & Exploration Company ........................... 63,400 1,575,490 Spinnaker Exploration Company* ...... 81,170 3,693,235 ----------- 11,878,643 ----------- PHARMACEUTICALS--2.1% AmeriSource Health Corporation Cl. A* ................ 111,100 5,999,400 ----------- PRODUCTION TECHNOLOGY EQUIPMENT--1.5% DuPont Photomasks, Inc.* ............ 49,829 2,780,458 Photronics Inc.* .................... 45,200 1,297,692 ----------- 4,078,150 ----------- RESTAURANTS--4.6% California Pizza Kitchen, Inc.* ..... 93,000 1,999,500 CEC Entertainment Inc.* ............. 57,600 2,952,000 Cheesecake Factory Incorporated* .... 145,650 5,543,439 Ruby Tuesday, Inc. .................. 106,850 2,035,493 Sonic Corp.* ........................ 13,200 367,884 ----------- 12,898,316 ----------- THE ALGER FUND -10- ALGER SMALL CAPITALIZATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 2001 Common Stocks--(CONT.) Shares Value ------ ----- RETAIL--4.6% Abercrombie & Fitch Co., Cl. A * .... 74,600 $ 2,484,180 American Eagle Outfitters Inc.* ..... 63,950 2,380,219 Coach, Inc.* ........................ 47,400 1,537,656 Insight Enterprises Inc.* ........... 6,400 170,880 Pacific Sunwear of California Inc. * 93,000 2,590,980 Tweeter Home Entertainment Group, Inc.* ...................... 73,980 1,850,240 Whole Foods Market, Inc.* ........... 26,100 1,268,460 Yankee Candle Company, Inc. (The)*+ . 28,250 538,163 ----------- 12,820,778 ----------- SCIENTIFIC EQUIPMENT & SUPPLIERS--1.6% Newport Corporation ................. 122,000 4,606,720 ----------- SECURITIES BROKERAGE & SERVICES--.9% Investment Technology Group, Inc.* ...................... 50,300 2,452,125 ----------- SEMICONDUCTOR CAPITAL EQUIPMENT--1.7% Advanced Energy Industries, Inc.* ... 45,600 1,582,776 Varian Semiconductor Equipment Associates, Inc.* ................. 67,100 3,056,405 ----------- 4,639,181 ----------- SEMICONDUCTORS--1.9% Cirrus Logic, Inc.* ................. 42,700 694,302 Exar Corporation* ................... 67,800 1,972,980 Integrated Circuit Systems, Inc.* ... 162,100 2,718,417 ----------- 5,385,699 ----------- Total Common Stocks (Cost $260,240,637) ............... 254,720,607 ----------- PRINCIPAL SHORT-TERM INVESTMENTS--10.6% AMOUNT -------- U.S. Government & Agency Obligations Federal Home Loan Banks, 4.50%, 5/1/01 (Cost $29,950,000) ................ $29,950,000 29,950,000 ------------- Total Investments (Cost $290,190,637)(a) 101.3% 284,670,607 Liabilities in Excess of Other Assets (1.3) (3,788,262) ------ ------------- Net Assets 100.0% $ 280,882,345 ====== ============= * Non-income producing security. + Securities partially or fully on loan. (a) At April 30, 2001, the net unrealized depreciation on investments, based on cost for federal income tax purposes of $290,190,637, amounted to $5,520,030 which consisted of aggregate gross unrealized appreciation of $23,761,442 and aggregate gross unrealized depreciation of $29,281,472. See Notes to Financial Statements. [This page intentionally left blank] THE ALGER FUND -12- ALGER SMALL CAPITALIZATION PORTFOLIO Financial Highlights For a share outstanding throughout the period
Class A (i) ----------------------------------------------------------------------------------------- Six Months Year Ended October 31, Ten Months Six Months Ended ---------------------------------------- Ended Ended April 30, October 31, April 30, 2001(iii)(vi) 2000 1999 1998 1997(iii) 2001(iii)(vi) ------------- -------- -------- -------- --------- --------- Net asset value, beginning of period .. $ 8.81 $ 10.35 $ 8.74 $ 10.35 $ 9.21 $ 8.52 -------- -------- -------- -------- --------- -------- Net investment income (loss) .......... (.02)(iv) (.08)(iv) (.08)(iv) (.06)(iv) (.04) (.04)(iv) Net realized and unrealized gain (loss) on investments ........................ (2.43) .35 2.71 (1.04) 1.18 (2.34) -------- -------- -------- -------- --------- -------- Total from investment operations ...... (2.45) .27 2.63 (1.10) 1.14 (2.38) Distributions from net realized gains . (1.82) (1.81) (1.02) (.51) -- (1.82) -------- -------- -------- -------- --------- -------- Net asset value, end of period ........ $ 4.54 $ 8.81 $ 10.35 $ 8.74 $ 10.35 $ 4.32 ======== ======== ======== ======== ========= ======== Total Return (v) ...................... (31.5%) .4% 32.7% (10.9%) 12.4% (31.8%) ======== ======== ======== ======== ========= ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted) ................... $ 87,380 $111,665 $ 69,986 $ 59,516 $ 25,996 $186,833 ======== ======== ======== ======== ========= ======== Ratio of expenses to average net assets ........................ 1.47% 1.41% 1.38% 1.37% 1.38% 2.22% ======== ======== ======== ======== ========= ======== Ratio of net investment income (loss) to average net assets ............. (.72%) (.81%) (.79%) (.71%) (.93%) (1.46%) ======== ======== ======== ======== ========= ======== Portfolio Turnover Rate ............. 89.46% 207.19% 110.92% 157.26% 120.27% 89.46% ======== ======== ======== ======== ========= ========
(i) Initially offered January 1, 1997. (ii) Initially offered August 1, 1997. (iii) Ratios have been annualized; total return has not been annualized. (iv) Amount was computed based on average shares outstanding during the period. (v) Does not reflect the effect of any sales charges. (vi) Unaudited. See Notes to Financial Statements. -13-
Class B Class C (ii) - ------------------------------------------------------- --------------------------------------------------------- Year Ended October 31, Six Months Three Months - ------------------------------------------------------- Ended Year Ended October 31, Ended April 30, ------------------------------- October 31, 2000 1999 1998 1997 1996 2001(iii)(vi) 2000 1999 1998 1997(iii) - -------- --------- -------- -------- -------- --------- ------- ------- ------- --------- $ 10.13 $ 8.61 $ 10.29 $ 10.86 $ 11.13 $ 8.53 $ 10.13 $ 8.59 $ 10.29 $ 10.38 - -------- --------- -------- -------- -------- -------- ------- ------- ------- --------- (.16)(iv) (.15)(iv) (.14)(iv) (.11) (.09) (.04)(iv) (.16)(iv) (.16)(iv) (.10)(iv) (.03) .36 2.69 (1.03) 1.28 .42 (2.35) .37 2.72 (1.09) (.06) - -------- --------- -------- -------- -------- -------- ------- ------- ------- --------- .20 2.54 (1.17) 1.17 .33 (2.39) .21 2.56 (1.19) (.09) (1.81) (1.02) (.51) (1.74) (.60) (1.82) (1.81) (1.02) (.51) -- - -------- --------- --------- --------- -------- -------- ------- ------- ------- ------- $ 8.52 $ 10.13 $ 8.61 $ 10.29 $ 10.86 $ 4.32 $ 8.53 $ 10.13 $ 8.59 $ 10.29 ======== ========= ======== ======== ======== ======== ======== ======== ======== ======== (.4%) 32.1% (11.6%) 12.9% 3.2% (31.9%) (.3%) 32.4% (11.8%) (.9%) ======== ========= ======== ======== ======== ======== ======== ======== ======== ======== $325,382 $ 419,842 $460,788 $580,651 $553,872 $ 6,669 $ 11,103 $ 7,659 $ 4,838 $ 338 ======== ========= ======== ======== ======== ======== ======== ======== ======== ======== 2.14% 2.14% 2.12% 2.14% 2.13% 2.22% 2.15% 2.13% 2.11% 2.09% ======== ========= ======== ======== ======== ======== ======== ======== ======== ======== (1.58%) (1.58%) (1.51%) (1.67%) (1.59%) (1.46%) (1.57%) (1.55%) (1.36%) (1.71%) ======== ========= ======== ======== ======== ======== ======== ======== ======== ======== 207.19% 110.92% 157.26% 120.27% 153.35% 89.46% 207.19% 110.92% 157.26% 120.27% ======== ========= ======== ======== ======== ======== ======== ======== ======== ========
THE ALGER FUND -14- ALGER BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2001 COMMON STOCKS--51.8% Shares Value ------ ----- ADVERTISING--.3% Omnicom Group Inc. ............... 11,900 $ 1,045,415 ----------- AEROSPACE--1.4% General Dynamics Corporation ..... 25,400 1,957,832 United Technologies Corporation .. 40,250 3,142,720 ----------- 5,100,552 ----------- AUTOMOTIVE--.1% Harley-Davidson, Inc.+ ........... 8,000 368,720 ----------- BIO-TECHNOLOGY RESEARCH & PRODUCTION--1.7% Amgen Inc.* ...................... 100,200 6,126,228 ----------- CABLE--.3% Comcast Corp., Cl. A Special* .... 25,000 1,097,750 ----------- COMMUNICATION EQUIPMENT--1.1% Cisco Systems, Inc.* ............. 195,500 3,319,590 Corning Incorporated ............. 21,000 461,370 ----------- 3,780,960 ----------- COMMUNICATION SERVICES--.4% SBC Communications Inc. ......... 32,100 1,324,125 ----------- COMMUNICATIONS TECHNOLOGY--2.8% AOL Time Warner Inc.* ............ 92,675 4,680,087 Nokia Corporation, ADR ........... 153,200 5,237,908 ----------- 9,917,995 ----------- COMPUTER RELATED & BUSINESS EQUIPMENT--3.9% Dell Computer Corporation* ....... 130,600 3,426,944 EMC Corporation* ................. 108,212 4,285,195 Sun Microsystems, Inc.* .......... 354,200 6,063,904 ----------- 13,776,043 ----------- COMPUTER SERVICES--1.7% eBay Inc.* ....................... 116,400 5,875,872 ----------- COMPUTER SOFTWARE--1.7% Intuit Inc.* ..................... 64,000 2,050,560 Microsoft Corporation* ........... 60,300 4,085,325 ----------- 6,135,885 ----------- CONGLOMERATE--3.6% General Electric Company ......... 131,700 6,391,401 Tyco International Ltd. .......... 114,100 6,089,517 ----------- 12,480,918 ----------- ENERGY & ENERGY SERVICES--6.1% BJ Services Company * ............ 38,000 3,125,500 Calpine Corporation * ............ 43,500 2,479,065 Duke Energy Corporation .......... 41,300 1,931,188 Halliburton Company .............. 105,150 4,543,531 Nabors Industries, Inc.* ......... 51,800 3,088,316 Smith International, Inc.* ....... 12,750 1,035,173 Transocean Sedco Forex Inc. ...... 94,050 5,105,034 ----------- 21,307,807 ----------- FINANCIAL SERVICES--4.8% Citigroup Inc. ................... 123,166 6,053,609 Marsh & McLennan Companies, Inc. ................ 45,700 4,407,308 Merrill Lynch & Co., Inc. ........ 61,900 3,819,230 Schwab (Charles) Corporation (The) 50,725 1,004,355 Stilwell Financial, Inc. ......... 53,800 1,585,486 ----------- 16,869,988 ----------- FOOD & BEVERAGES--1.4% Philip Morris Companies Inc. ..... 99,650 4,993,462 ----------- FOOD CHAINS--1.5% Kroger Co. (The)* ................ 52,900 1,195,011 Safeway Inc.* .................... 77,200 4,191,960 ----------- 5,386,971 ----------- HEALTH CARE ADMINISTRATIVE SERVICES--1.9% Cardinal Health, Inc. ............ 100,950 6,804,030 ----------- INDUSTRIAL EQUIPMENT--.6% Waters Corporation* .............. 39,550 2,064,510 ----------- Insurance--1.6% American International Group, Inc. 67,200 5,496,960 ----------- MANUFACTURING--1.0% Sanmina Corporation* ............. 53,200 1,550,780 Solectron Corporation* ........... 72,600 1,847,670 ----------- 3,398,450 ----------- MEDIA--.5% Viacom Inc. Cl. B* ............... 35,650 1,855,939 ----------- MEDICAL DEVICES--.3% Guidant Corporation* ............. 24,200 992,200 ----------- MEDICAL SERVICES--.7% Tenet Healthcare Corporation* .... 56,050 2,502,072 ----------- OIL & GAS--1.6% Exxon Mobil Corporation .......... 62,250 5,515,350 ----------- PHARMACEUTICALS--5.4% Abbott Laboratories .............. 39,800 1,845,923 American Home Products Corporation ........... 97,391 5,624,330 THE ALGER FUND -15- ALGER BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 2001 COMMON STOCKS--(CONT.) SHARES VALUE ------ ----- PHARMACEUTICALS--(cont.) Baxter International Inc. ............... 54,000 $ 4,922,100 Forest Laboratories, Inc. * ............. 8,650 528,948 Pfizer Inc. ............................. 138,225 5,985,143 ------------ 18,906,444 ------------ RETAIL--5.4% Best Buy Co., Inc.* ..................... 47,100 2,592,855 Home Depot, Inc. ........................ 140,800 6,631,680 Target Corporation ...................... 49,800 1,914,810 Walgreen Co. ............................ 42,300 1,809,594 Wal-Mart Stores, Inc. ................... 113,950 5,895,773 ------------ 18,844,712 ------------ Total Common Stocks (Cost $182,313,130) ................... 181,969,358 ------------ PRINCIPAL CORPORATE BONDS--18.2% AMOUNT ---------- AUTOMOTIVE--.7% General Motors Acceptance Corp., 6.55%, 11/17/03 ............................. $2,300,000 2,329,463 ------------ BANKS--2.2% First USA Bank Wilmington Delaware, 7.65%, 8/1/03 ............................... 3,000,000 3,153,000 Signet Bank, 7.80%, 9/15/06 .............................. 3,000,000 3,208,140 Wells Fargo & Co. Sr. Global Notes, 6.625%, 7/15/04 ............................. 1,200,000 1,235,748 ------------ 7,596,888 ------------ CHEMICALS--.4% Du Pont E.I. De Nemours & Co., 6.50%, 9/1/02 ............................... 1,500,000 1,536,015 ------------ COMMUNICATION SERVICES--1.0% SBC Communications Inc., 6.25%, 3/15/11 .............................. 3,750,000 3,631,238 ------------ COMMUNICATIONS TECHNOLOGY--.9% Vodafone Group, PLC Adr, 7.625%, 2/15/05(a) .......................... 3,000,000 3,152,940 ------------ CONGLOMERATE--.1% Loews Corp., 7.625%, 6/1/23 .............................. 500,000 482,440 ------------ CONSUMER PRODUCTS--.1% Eastman Kodak Company, 9.20%, 6/1/21 ............................... 300,000 318,687 ------------ ELECTRIC & GAS COMPANIES--1.1% GTE Florida Inc., 6.25%, 11/15/05 ............................. 3,000,000 3,010,950 Pacific Gas & Electric Co., 7.25%, 3/1/26+ .............................. 182,000 180,180 Potomac Electric Power Co., 7.00%, 1/15/24 .............................. 200,000 183,368 Washington Gas Light Co., Medium Term Notes, 6.51%, 8/18/08 .............................. 500,000 495,460 ------------ 3,869,958 ------------ FINANCE--.9% Household Finance Corp., 7.20%, 7/15/06 .............................. 3,000,000 3,102,840 ------------ FINANCIAL SERVICES--5.4% Bank of America Corp., 7.20%, 4/15/06 .............................. 1,500,000 1,570,050 Block Financial Corp., 8.50%, 4/15/07 .............................. 500,000 528,035 Chase Manhattan Corporation, 8.50%, 2/15/02 .............................. 200,000 205,742 Cit Group Inc., 7.125%, 10/15/04 ............................ 1,000,000 1,025,430 Citigroup Inc., 6.50%, 1/18/11 .............................. 2,500,000 2,483,275 Countrywide Home Loan Inc., 6.51%, 2/11/05 .............................. 1,524,000 1,526,743 6.935%, 7/16/07 ............................. 3,450,000 3,526,590 Goldman, Sachs Group, 6.65%, 5/15/09 .............................. 1,000,000 987,000 Merrill Lynch & Co., Inc., 6.00%, 2/17/09 .............................. 3,000,000 2,892,690 Morgan (J.P.) & Co. Incorporated, 7.625%, 9/15/04 ............................. 1,000,000 1,063,090 Morgan Stanley Dean Witter & Co., 6.875%, 3/1/07 .............................. 2,000,000 2,059,480 NCNB Texas National Bank Dallas, 9.50%, 6/1/04 ............................... 1,000,000 1,101,610 ------------ 18,969,735 ------------ FOOD CHAINS--.7% Safeway Inc., 6.15%, 3/1/06 ............................... 2,500,000 2,483,150 ------------ INSURANCE--.6% GE Global Insurance, 7.50%, 6/15/10 .............................. 2,000,000 2,158,200 ------------ OIL & GAS--1.4% Chevron Corp., 6.625%, 10/1/04 ............................. 2,000,000 2,077,620 Conoco Inc., 5.90%, 4/15/04 .............................. 3,000,000 3,003,750 ------------ 5,081,370 ------------ THE ALGER FUND -16- ALGER BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 2001 PRINCIPAL CORPORATE BONDS--(CONT.) AMOUNT VALUE --------- ----- RETAIL--1.7% Target Corporation, 6.35%, 1/15/11 .......................... $3,000,000 $ 2,924,070 Wal-Mart Stores, Inc., 6.55%, 8/10/04 .......................... 3,000,000 3,095,310 ------------ 6,019,380 ------------ UTILITIES--1.0% Duke Capital Corp., 7.25%, 10/1/04 .......................... 3,150,000 3,255,714 ------------ Total Corporate Bonds (Cost $62,943,085) ...................... 63,988,018 ------------ U.S. GOVERNMENT & AGENCY OBLIGATIONS--23.7% Federal Home Loan Banks, 5.87%, 4/22/03 .......................... 300,000 306,189 5.935%, 4/22/05 ......................... 400,000 409,064 6.50%, 11/15/05 ......................... 3,000,000 3,117,660 6.375%, 8/15/06 ......................... 3,000,000 3,118,950 7.625%, 5/15/07 ......................... 2,000,000 2,205,340 6.75%, 8/15/07 .......................... 3,000,000 3,173,760 5.875%, 11/15/07 ........................ 3,000,000 3,004,680 5.89%, 6/30/08 .......................... 3,000,000 3,016,410 6.12%, 8/26/08 .......................... 1,000,000 992,500 7.625%, 5/14/10 ......................... 2,000,000 2,223,600 Federal Home Loan Mortgage Corporation, 5.125%, 11/4/04 ......................... 3,000,000 2,986,140 5.65%, 4/25/06 .......................... 3,000,000 2,999,790 5.75%, 4/15/08 .......................... 1,000,000 997,810 6.625%, 9/15/09 ......................... 1,200,000 1,250,628 6.875%, 9/15/10 ......................... 2,000,000 2,115,000 7.08%, 3/17/14 .......................... 400,000 396,252 Federal National Mortgage Association, 7.125%, 2/15/05 ......................... 2,000,000 2,127,420 6.96%, 4/2/07 ........................... 500,000 531,875 6.09%, 1/12/09 .......................... 1,000,000 980,310 7.00%, 3/4/13 ........................... 600,000 594,378 6.75%, 2/4/28 ........................... 400,000 375,688 Federal Farm Credit Banks, 6.80%, 10/12/07 ......................... 9,000,000 9,545,400 5.75%, 1/18/11 .......................... 3,000,000 2,928,600 Student Loan Marketing Association, 5.25%, 3/15/06 .......................... 3,000,000 2,973,960 U.S. Treasury Notes, 6.125%, 12/31/01 ........................ 1,000,000 1,013,440 6.50%, 3/31/02 .......................... 2,000,000 2,043,120 6.375%, 4/30/02 ......................... 2,000,000 2,044,380 7.50%, 5/15/02 .......................... 100,000 103,422 6.25%, 7/31/02 .......................... 3,500,000 3,588,060 6.25%, 2/15/03 .......................... 1,750,000 1,807,155 6.00%, 8/15/04 .......................... 1,500,000 1,558,125 5.875%, 11/15/04 ........................ 4,000,000 4,141,880 5.625%, 2/15/06 ......................... 9,000,000 9,278,438 6.50%, 10/15/06 ......................... 1,500,000 1,602,885 5.625%, 5/15/08 ......................... 1,500,000 1,534,920 6.00%, 8/15/09 .......................... 2,000,000 2,084,680 ------------ Total U.S. Government & Agency Obligations (Cost $81,090,405) ...................... 83,171,909 ------------ SHORT-TERM INVESTMENTS--10.5% U.S. Government & Agency Obligations--10.2% Federal Home Loan Banks, 4.50%, 5/1/01 (Cost $36,000,000) ...................... 36,000,000 36,000,000 ------------ OTHER SHORT-TERM INVESTMENTS--.3% SHARES Securities Lending Quality Trust (Cost $1,078,400) (c) ................... 1,078,400 1,078,400 ------------ Total Short-Term Investments (Cost $37,078,400) ...................... 37,078,400 ------------ Total Investments (Cost $363,425,020)(b) .................. 104.2% 366,207,685 Liabilities in Excess of Other Assets ..... (4.2) (14,820,497) ----- ------------ Net Assets ................................ 100.0% $351,387,188 ===== ============ * Non-income producing security. + Securities partially or fully on loan. (a) Pursuant to Securities and Exchange Commission Rule 144A, these securities may be sold prior to their maturity to qualified institutional buyers. (b) At April 30, 2001, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $363,425,020 amounted to $2,782,665 which consisted of aggregate gross unrealized appreciation of $19,040,127 and aggregate gross unrealized depreciation of $16,257,462. (c) Represents investment of cash collateral received for securities on loan. See Notes to Financial Statements. [This page intentionally left blank] THE ALGER FUND -18- ALGER BALANCED PORTFOLIO Financial Highlights For a share outstanding throughout the period
Class A (i) ----------------------------------------------------------------------------- Six Months Year Ended October 31, Ten Months Six Months Ended -------------------------------- Ended Ended April 30, October 31, April 30, 2001(iii)(vi) 2000 1999 1998 1997(iii) 2001(iii)(vi) ------------ -------- -------- -------- --------- --------- Net asset value, beginning of period .... $ 21.29 $ 20.95 $ 16.83 $ 16.58 $ 13.99 $ 20.83 -------- -------- -------- -------- --------- --------- Net investment income (loss) ............ .23(iv) .39(iv) .25(iv) .16(iv) .05 .15(iv) Net realized and unrealized gain (loss) . on investments (1.23) 1.68 4.97 2.35 2.54 (1.20) -------- -------- -------- -------- --------- --------- Total from investment operations ........ (1.00) 2.07 5.22 2.51 2.59 (1.05) -------- -------- -------- -------- --------- --------- Dividends from net investment income .... (.22) (.13) (.08) (.06) -- (.18) Distributions from net realized gains ... -- (1.60) (1.02) (2.20) -- -- -------- -------- -------- -------- -------- -------- Total distributions ..................... (.22) (1.73) (1.10) (2.26) -- (.18) -------- -------- -------- -------- -------- -------- Net asset value, end of period .......... $ 20.07 $ 21.29 $ 20.95 $ 16.83 $ 16.58 $ 19.60 ======== ======== ======== ======== ======== ======== Total Return (v) ........................ (4.7%) 10.2% 32.5% 17.7% 18.5% (5.0%) ======== ======== ======== ======== ======== ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted) ..................... $124,306 $ 93,671 $ 12,488 $ 1,354 $ 459 $167,757 ======== ======== ======== ======== ======== ======== Ratio of expenses to average net assets .......................... 1.20% 1.29% 1.40% 1.79% 2.10% 1.95% ======== ======== ======== ======== ======== ======== Ratio of net investment income (loss) to average net assets ............... 2.27% 1.80% 1.15% .98% .72% 1.53% ======== ======== ======== ======== ======== ======== Portfolio Turnover Rate ............... 34.29% 63.50% 126.01% 93.23% 109.26% 34.29% ======== ======== ======== ======== ======== ========
(i) Initially offered January 1, 1997. (ii) Initially offered August 1, 1997. (iii) Ratios have been annualized; total return has not been annualized. (iv) Amount was computed based on average shares outstanding during the period. (v) Does not reflect the effect of any sales charges. (vi) Unaudited. See Notes to Financial Statements. -19-
Class B Class C (ii) - -------------------------------------------------------- -------------------------------------------------------- Year Ended October 31, Year Ended October 31, Three Months - -------------------------------------------------------- Ended -------------------------------- Ended April 30, October 31, 2000 1999 1998 1997 1996 2001(iii)(vi) 2000 1999 1998 1997(iii) - -------- -------- -------- -------- -------- -------- -------- -------- ------- ------- $ 20.59 $ 16.64 $ 16.48 $ 14.21 $ 13.59 $ 20.90 $ 20.65 $ 16.66 $ 16.49 $ 16.88 - -------- -------- -------- -------- -------- -------- -------- -------- ------- ------- .17(iv) .07(iv) .03(iv) -- .12 .15(iv) .21(iv) .07(iv) .04(iv) (.01) 1.71 4.93 2.34 2.67 .72 (1.19) 1.67 4.95 2.33 (.38) - -------- -------- -------- -------- -------- -------- -------- -------- ------- ------- 1.88 5.00 2.37 2.67 .84 (1.04) 1.88 5.02 2.37 (.39) - -------- -------- -------- -------- -------- -------- -------- -------- ------- ------- (.04) (.03) (.01) (.06) (.01) (.18) (.03) (0.01) -- -- (1.60) (1.02) (2.20) (.34) (.21) -- (1.60) (1.02) (2.20) -- - -------- -------- -------- -------- -------- -------- -------- -------- ------- ------- (1.64) (1.05) (2.21) (.40) (.22) (.18) (1.63) (1.03) (2.20) -- - -------- -------- -------- -------- -------- -------- -------- -------- ------- ------- $ 20.83 $ 20.59 $ 16.64 $ 16.48 $ 14.21 $ 19.68 $ 20.90 $ 20.65 $ 16.66 $ 16.49 ======== ======== ======== ======== ======== ======== ======== ======== ======= ======== 9.4% 31.5% 16.9% 19.3% 6.3% (5.0%) 9.3% 31.6% 16.8% (2.3%) ======== ======== ======== ======== ======== ======== ======== ======== ======= ======== $132,123 $ 52,607 $ 19,282 $ 12,653 $ 13,492 $ 59,324 $ 49,592 $ 14,626 $ 334 $ 48 ======== ======== ======== ======== ======== ======== ======== ======== ======= ======== 2.04% 2.18% 2.58% 2.89% 2.70% 1.95% 2.04% 2.16% 2.53% 2.77% ======== ======== ======== ======== ======== ======== ======== ======== ======= ======== .98% .36% .19% .04% .47% 1.53% .99% .38% .23% (.84%) ======== ======== ======== ======== ======== ======== ======== ======== ======= ======== 63.50% 126.01% 93.23% 109.26% 85.51% 34.29% 63.50% 126.01% 93.23% 109.26% ======== ======== ======== ======== ======== ======== ======== ======== ======= ========
THE ALGER FUND -20- ALGER MIDCAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2001 COMMON STOCKS--89.4% SHARES VALUE ------ ----- AEROSPACE--.8% General Dynamics Corporation ..................... 79,500 $ 6,127,860 ------------ AIRLINES--.4% Continental Airlines, Inc. Cl. B* ................ 57,500 2,955,500 ------------ BIO-TECHNOLOGY RESEARCH & PRODUCTION--4.1% Affymetrix Inc.* ................................. 218,000 7,204,900 Cephalon, Inc.*+ ................................. 167,500 10,669,750 Gilead Sciences Inc.* ............................ 249,400 12,215,611 ------------ 30,090,261 ------------ BUSINESS SERVICES--3.5% Affiliated Computer Services, Inc. Cl. A* .......................... 57,300 4,125,600 CSG Systems International Inc.* .................. 77,800 4,528,738 Concord EFS Inc.* ................................ 357,300 16,632,315 ------------ 25,286,653 ------------ COMPUTER SERVICES--4.8% Amdocs Limited* .................................. 92,800 5,465,920 eBay Inc.* ....................................... 575,400 29,046,192 ------------ 34,512,112 ------------ COMPUTER SOFTWARE--7.2% Intuit Inc.* ..................................... 636,100 20,380,644 Manugistics Group, Inc.* ......................... 126,900 4,304,448 Openwave Systems Inc.* ........................... 387,542 13,412,829 PeopleSoft, Inc.* ................................ 388,200 14,378,928 ------------ 52,476,849 ------------ COMPUTER TECHNOLOGY--.7% Flextronics International Ltd.* .................. 192,600 5,179,014 ------------ DIVERSIFIED FINANCIAL SERVICES--.3% BISYSGroup, Inc. (The)* .......................... 41,300 1,990,660 ------------ ENERGY & ENERGY SERVICES--18.4% BJ Services Company* ............................. 260,100 21,393,225 Calpine Corporation*+ ............................ 276,800 15,774,832 Cooper Cameron Corporation* ...................... 247,533 15,609,431 ENSCO International Inc. ......................... 189,250 7,361,825 Nabors Industries, Inc.* ......................... 413,250 24,637,965 NRG Energy, Inc.* ................................ 134,600 4,811,950 Reliant Resources, Inc.* ......................... 54,800 1,644,000 Santa Fe International Corporation ............... 160,000 6,080,000 Smith International, Inc.* ....................... 289,000 23,463,910 Transocean Sedco Forex Inc. ...................... 238,100 12,924,068 ------------ 133,701,206 ------------ FINANCIAL SERVICES--5.1% Cit Group Inc. Cl. A ............................. 607,450 22,293,415 Stilwell Financial Inc. .......................... 504,000 14,852,880 ------------ 37,146,295 ------------ FOODS & BEVERAGES--2.6% Starbucks Corporation* ........................... 975,000 18,866,250 ------------ HEALTH CARE--2.5% Express Scripts Inc. Cl. A* ...................... 179,800 15,265,020 Teva Pharmaceutical Industries Ltd. ADR ....................................... 59,400 3,234,330 ------------ 18,499,350 ------------ HEALTH CARE FACILITIES--2.9% Laboratory Corporation of America Holdings* ...................................... 149,000 21,009,000 ------------ INDUSTRIAL EQUIPMENT--4.9% SPX Corporation*+ ................................ 74,900 8,434,489 Waters Corporation* .............................. 515,450 26,906,490 ------------ 35,340,979 ------------ MACHINERY--OIL WELL EQUIPMENT & SERVICES--1.0% UTIEnergy Corp.* ................................. 206,850 7,115,640 ------------ MANUFACTURING--2.1% Sanmina Corporation* ............................. 535,400 15,606,910 ------------ MEDICAL SERVICES--.5% Quest Diagnostics Incorporated* .................. 30,300 3,732,960 ------------ OIL & GAS--3.0% Devon Energy Corporation ......................... 191,800 11,318,118 EOG Resources Inc. ............................... 223,350 10,361,207 ------------ 21,679,325 ------------ PHARMACEUTICALS--11.1% Allergan, Inc. ................................... 175,250 13,319,000 AmeriSource Health Corporation Cl. A* ............................. 330,334 17,838,036 Forest Laboratories, Inc.* ....................... 446,600 27,309,590 Genzyme Corp. General Division* .................. 101,000 11,005,970 King Pharmaceuticals, Inc.* ...................... 258,300 10,882,179 ------------ 80,354,775 ------------ PRODUCTION TECHNOLOGY EQUIPMENT--1.1% PerkinElmer, Inc. ................................ 118,300 7,915,453 ------------ RESEARCH--.5 Biogen Inc.* ..................................... 53,300 3,446,378 ------------ RESTAURANTS--2.3% Outback Steakhouse, Inc.* ........................ 586,850 17,012,782 ------------ THE ALGER FUND -21- ALGER MIDCAP GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 2001 COMMON STOCKS--(CONT.) SHARES VALUE ------ ----- RETAIL--4.8% Abercrombie & Fitch Co., Cl. A* ............. 120,250 $ 4,004,325 Best Buy Co., Inc.* ......................... 404,700 22,278,735 Toys "R"Us, Inc.* ........................... 352,800 8,749,440 ------------ 35,032,500 ------------ SCIENTIFIC EQUIPMENT & SUPPLIERS--1.2% Newport Corporation ......................... 231,900 8,756,544 ------------ SECURITIES BROKERAGE & SERVICES--.6% Investment Technology Group, Inc.* .............................. 82,900 4,041,375 ------------ SEMICONDUCTORS--3.0% Microchip Technology Incorporated* ............................. 741,825 21,460,997 ------------ Total Common Stocks (Cost $570,168,601) ....................... 649,337,628 ------------ PRINCIPAL SHORT-TERM INVESTMENTS--10.3% AMOUNT ------ U.S. GOVERNMENT & AGENCY OBLIGATIONS Federal Home Loan Banks, 4.50%, 5/1/01 (Cost $74,400,000) ........................ $ 74,400,000 74,400,000 ------------ Total Investments (Cost $644,568,601) (a) ................... 99.7% 723,737,628 Other Assets in Excess of Liabilities ....... .3 2,293,069 ----- ------------ Net Assets .................................. 100.0% $726,030,697 ===== ============ * Non-income producing security. + Securities partially or fully on loan. (a) At April 30, 2001, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $644,568,601, amounted to $79,169,027 which consisted of aggregate gross unrealized appreciation of $107,761,736 and aggregate gross unrealized depreciation of $28,592,709. See Notes to Financial Statements. THE ALGER FUND -22- ALGER MIDCAP GROWTH PORTFOLIO(I) Financial Highlights For a share outstanding throughout the period
Class A (ii) --------------------------------------------------------------------------------- Six Months Year Ended October 31, Ten Months Six Months Ended --------------------------------------- Ended Ended April 30, October 31, April 30, 2001(iv)(vii) 2000 1999 1998 1997(iv) 2001(iv)(vii) -------- -------- ---------- ------- ------- -------- Net asset value, beginning of period .. $ 10.17 $ 8.20 $ 7.07 $ 7.49 $ 6.31 $ 9.79 -------- -------- ---------- ------- ------- -------- Net investment income (loss) .......... (.02)(v) (.04)(v) (.05)(v) (.03)(v) (.03) (.05)(v) Net realized and unrealized gain (loss) on investments ........................ (1.01) 3.51 2.16 .43 1.21 (.97) -------- -------- ---------- ------- ------- -------- Total from investment operations ...... (1.03) 3.47 2.11 .40 1.18 (1.02) Distributions from net realized gains . (1.18) (1.50) (.98) (.82) -- (1.18) -------- -------- ---------- ------- ------- -------- Net asset value, end of period ........ $ 7.96 $ 10.17 $ 8.20 $ 7.07 $ 7.49 $ 7.59 ======== ======== ========== ======= ======= ======== Total Return (vi) ..................... (10.1%) 47.7% 33.3% 7.2% 18.7% (10.5%) ======== ======== ========== ======= ======= ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted) ................... $159,718 $141,558 $ 49,246 $32,447 $ 5,436 $509,237 ======== ======== ========== ======= ======= ======== Ratio of expenses to average net assets ........................ 1.33% 1.29% 1.31% 1.34% 1.40% 2.07% ======== ======== ========== ======= ======= ======== Ratio of net investment income (loss) to average net assets ............. (.59%) (.46%) (.58%) (.53%) (.83%) (1.32%) ======== ======== ========== ======= ======= ======== Portfolio Turnover Rate ............. 49.01% 97.11% 203.86% 180.98% 160.09% 49.01% ======== ======== ========== ======= ======= ========
(i) Per share data has been adjusted to reflect the effect of a 3 for 1 stock split which occurred April 20, 2000. (ii) Initially offered January 1, 1997. (iii) Initially offered August 1, 1997. (iv) Ratios have been annualized; total return has not been annualized. (v) Amount was computed based on average shares outstanding during the period. (vi) Does not reflect the effect of any sales charges. (vii) Unaudited. See Notes to Financial Statements. -23-
Class B Class C (iii) - ---------------------------------------------------------- ------------------------------------------------------------------ Year Ended October 31, Six Months Year Ended October 31, Three Months - ---------------------------------------------------------- Ended ----------------------------------- Ended April 30, October 31, 2000 1999 1998 1997 1996 2001(iv)(vii) 2000 1999 1998 1997(iv) - -------- -------- -------- -------- -------- ------- ------- -------- -------- ------- $ 8.00 $ 6.96 $ 7.44 $ 6.29 $ 6.31 $ 9.77 $ 7.99 $ 6.95 $ 7.44 $ 7.50 - -------- -------- -------- -------- -------- ------- ------- -------- -------- ------- (.12)(v) (.11)(v) (.10) (.10) (.08)(v) (.05)(v) (.11)(v) (.11)(v) (.09)(v) (.01) 3.41 2.13 .44 1.41 .45 (.97) 3.39 2.13 .42 (.05) - -------- -------- -------- -------- -------- ------- ------- -------- -------- ------- 3.29 2.02 .34 1.31 .37 (1.02) 3.28 2.02 .33 (.06) (1.50) (.98) (.82) (.16) (.39) (1.18) (1.50) (.98) (.82) -- - -------- -------- -------- -------- -------- ------- ------- -------- -------- ------- $ 9.79 $ 8.00 $ 6.96 $ 7.44 $ 6.29 $ 7.57 $ 9.77 $ 7.99 $ 6.95 $ 7.44 ======== ======== ======== ======== ======== ======= ======= ======== ======== ======= 46.4% 32.3% 6.2% 21.4% 6.4% (10.5%) 46.4% 32.4% 6.1% (.7%) ======== ======== ======== ======== ======== ======= ======= ======== ======== ======= $532,476 $248,139 $191,934 $166,475 $125,686 $57,076 $51,335 $ 10,827 $ 1,759 $ 84 ======== ======== ======== ======== ======== ======= ======= ======== ======== ======= 2.04% 2.07% 2.10% 2.19% 2.27% 2.07% 2.04% 2.08% 2.08% 1.97% ======== ======== ======== ======== ======== ======= ======= ======== ======== ======= (1.23%) (1.39%) (1.38%) (1.58%) (1.33%) (1.33%) ( 1.22%) (1.40%) (1.26%) (1.55%) ======== ======== ======== ======== ======== ======= ======= ======== ======== ======= 97.11% 203.86% 180.98% 160.09% 113.95% 49.01% 97.11% 203.86% 180.98% 160.09% ======== ======== ======== ======== ======== ======== ======= ======== ======== =======
THE ALGER FUND -24- ALGER CAPITAL APPRECIATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2001 COMMON STOCKS--93.1 % Shares Value ------ ----- AEROSPACE--2.8% General Dynamics Corporation ............. 232,225 $ 17,899,902 United Technologies Corporation .......... 171,000 13,351,680 ------------- 31,251,582 ------------- BIO-TECHNOLOGY RESEARCH & PRODUCTION--3.8% Amgen Inc.* .............................. 604,750 36,974,415 Celgene Corporation*+ .................... 92,000 1,625,640 IDEC Pharmaceuticals Corporation* ........................... 81,700 4,019,640 ------------- 42,619,695 ------------- CABLE--2.3% Comcast Corp., Cl. A Special* ............ 581,550 25,535,861 ------------- COMMUNICATION EQUIPMENT--1.6% Cisco Systems, Inc.* ..................... 1,063,050 18,050,589 ------------- COMMUNICATIONS TECHNOLOGY--6.3% AOLTime Warner, Inc.* .................... 563,350 28,449,175 Nokia Corporation, ADR ................... 1,254,500 42,891,355 ------------- 71,340,530 ------------- COMPUTER RELATED & BUSINESS EQUIPMENT--2.3% EMC Corporation* ......................... 299,550 11,862,180 Sun Microsystems, Inc.* .................. 822,100 14,074,352 ------------- 25,936,532 ------------- COMPUTER SERVICES--6.2% Amdocs Limited*+ ......................... 385,300 22,694,170 eBay Inc.* ............................... 946,800 47,794,463 ------------- 70,488,633 ------------- COMPUTER SOFTWARE--5.3% Intuit Inc.* ............................. 503,800 16,141,752 Microsoft Corporation* ................... 441,100 29,884,525 Openwave Systems Inc.* ................... 410,100 14,193,561 ------------- 60,219,838 ------------- CONGLOMERATE--5.8% General Electric Company ................. 858,662 41,670,867 Tyco International Ltd. .................. 442,800 23,632,236 ------------- 65,303,103 ------------- ENERGY & ENERGY SERVICES--3.1% Calpine Corporation* ..................... 232,100 13,227,379 Duke Energy Corporation .................. 191,000 8,931,160 Transocean Sedco Forex Inc. .............. 232,600 12,625,528 ------------- 34,784,067 ------------- FINANCIAL SERVICES--17.2% Bank of New York Company, Inc. (The) .................... 430,050 21,588,510 Citigroup Inc. ........................... 1,115,933 54,848,107 Marsh & McLennan Companies, Inc. ........................ 351,265 33,875,997 Merrill Lynch &Co., Inc. ................. 416,700 25,710,390 Morgan Stanley Dean Witter & Co .......... 570,250 35,805,998 Schwab (Charles) Corporation (The) ....... 704,350 13,946,130 State Street Corporation ................. 53,200 5,521,096 Stilwell Financial, Inc. ................. 117,700 3,468,619 ------------- 194,764,847 ------------- FOOD & BEVERAGES--2.1% Philip Morris Companies Inc. ............. 485,300 24,318,383 ------------- FOOD CHAINS--3.1% Safeway Inc.* ............................ 656,400 35,642,520 ------------- HEALTH CARE ADMINISTRATIVE SERVICES--2.0% Cardinal Health, Inc. .................... 328,050 22,110,570 ------------- INDUSTRIAL EQUIPMENT--10.4% Waters Corporation* ...................... 317,300 16,563,060 ------------- INSURANCE--3.9% American International Group, Inc. ....... 548,740 44,886,932 ------------- PHARMACEUTICALS--13.0% American Home Products Corporation ............................ 711,700 41,100,675 AmeriSource Health Corporation Cl. A*+ .................... 295,400 15,951,600 Baxter International Inc. ................ 324,200 29,550,830 Eli Lilly and Company .................... 384,250 32,661,250 Pfizer Inc. .............................. 645,222 27,938,113 ------------- 147,202,468 ------------- RETAIL --10.9% Best Buy Co., Inc.* ...................... 228,350 12,570,667 Home Depot, Inc. ......................... 853,675 40,208,093 Target Corporation ....................... 699,800 26,907,310 Toys "R"Us, Inc.* ........................ 167,900 4,163,920 Wal-Mart Stores, Inc. .................... 779,650 40,339,091 ------------- 124,189,081 ------------- Total Common Stocks (Cost $1,107,361,054) .................. 1,055,208,291 ------------- THE ALGER FUND -25- ALGER CAPITAL APPRECIATION PORTFOLIO SCHEDULE OF INVESTMENTS (Unaudited) (Continued) April 30, 2001 SHORT-TERM INVESTMENTS--10.1% PRINCIPAL AMOUNT VALUE --------- ----- U.S. GOVERNMENT & AGENCY OBLIGATIONS--6.5% Federal Home Loan Banks, 4.50%, 5/1/01 (Cost $73,550,000) ................ $73,550,000 $ 73,550,000 -------------- OTHER SHORT-TERM INVESTMENTS--3.6% SHARES ------ Securities Lending Quality Trust (Cost $40,788,917) (b) ............ 40,788,917 40,788,917 -------------- Total Short-Term Investments (Cost $114,338,917) ............... 114,338,917 -------------- Total Investments (Cost $1,221,699,971) (a) ......... 103.2% 1,169,547,208 Liabilities in Excess of Other Assets (3.2) (35,991,147) ----- -------------- Net Assets .......................... 100.0% $1,133,556,061 ===== ============== * Non-income producing security. + Securities partially or fully on loan. (a) At April 30, 2001, the net unrealized depreciation on investments, based on cost for federal income tax purposes of $1,221,699,971, amounted to $52,152,763 which consisted of aggregate gross unrealized appreciation of $75,066,427 and aggregate gross unrealized depreciation of $127,219,190. (b) Represents investment of cash collateral received for securities on loan. See Notes to Financial Statements. THE ALGER FUND -26- ALGER CAPITAL APPRECIATION PORTFOLIO(I) Financial Highlights For a share outstanding throughout the period
Class A (ii) --------------------------------------------------------------------------- ------------ Six Months Ten Months Six Months Ended Year Ended October 31, Ended Ended April 30, ------------------------------------------- October 31, April 30, 2001(iv)(vii) 2000 1999 1998 1997(iv) 2001(iv)(vii) ------------ ----------- ----------- ----------- ----------- ------------ Net asset value, beginning of period ......................... $ 13.54 $ 13.57 $ 9.03 $ 8.72 $ 7.20 $ 13.09 ------------ ----------- ----------- ----------- ----------- ------------ Net investment income (loss) (.01)(v) (.11)(v) (.12)(v) (.05)(v) (.03) (.05)(v) Net realized and unrealized gain (loss) on investments ........ (3.20) 2.01 5.50 .90 1.55 (3.08) ------------ ----------- ----------- ----------- ----------- ------------ Total from investment operations (3.21) 1.90 5.38 .85 1.52 (3.13) Distributions from net realized gains .................... (.48) (1.93) (.84) (.54) -- (.48) ------------ ----------- ----------- ----------- ----------- ------------ Net asset value, end of period ...... $ 9.85 $ 13.54 $ 13.57 $ 9.03 $ 8.72 $ 9.48 ============ =========== =========== =========== =========== ============ Total Return (vi) ................... (24.2%) 12.6% 63.9% 10.7% 21.2% (24.4%) ============ =========== =========== =========== =========== ============ Ratios and Supplemental Data: Net assets, end of period (000's omitted) ................. $ 227,648 $ 366,296 $ 147,929 $ 54,415 $ 15,572 $ 771,753 ============ =========== =========== =========== =========== ============ Ratio of expenses excluding interest to average net assets ...................... 1.37% 1.36% 1.38% 1.42% 1.45% 2.12% ============ =========== =========== =========== =========== ============ Ratio of expenses including interest to average net assets ...................... 1.37% 1.36% 1.44% 1.49% 1.53% 2.12% ============ =========== =========== =========== =========== ============ Ratio of net investment income (loss) to average net assets .... (.25%) (.66%) (.98%) (.67%) (.85%) (1.01%) ============ =========== =========== =========== =========== ============ Portfolio Turnover Rate ........... 49.68% 132.37% 186.93% 184.07% 157.63% 49.68% ============ =========== =========== =========== =========== ============ Amount of debt outstanding at end of period ....................... -- -- -- -- -- -- ============ =========== =========== =========== =========== ============ Average amount of debt outstanding during the period ... -- $ 138,087 $ 7,758,649 $ 2,814,493 $ 2,940,097 -- ============ =========== =========== =========== =========== ============ Average daily number of portfolio shares outstanding during the period ............... 106,327,315 97,199,509 42,330,298 29,012,853 23,217,597 106,327,315 ============ -========== =========== =========== =========== -=========== Average amount of debt per portfolio share during the period ...................... -- -- $ 0.18 $ 0.10 $ 0 .13 -- ============ -========== =========== =========== =========== -===========
(i) Per share data has been adjusted to reflect the effect of a 3 for 1 stock split which occurred January 8, 1998. (ii) Initially offered January 1, 1997. (iii) Initially offered August 1, 1997. (iv) Ratios have been annualized; total return has not been annualized. (v) Amount was computed based on average shares outstanding during the period. (vi) Does not reflect the effect of any sales charges. (vii) Unaudited. See Notes to Financial Statements. Class B - ---------------------------------------------------------------------------- Year Ended October 31, - ---------------------------------------------------------------------------- 2000 1999 1998 1997 1996 =========== =========== =========== =========== =========== $ 13.28 $ 8.90 $ 8.67 $ 7.21 $ 6.21 - ----------- ----------- ----------- ----------- ----------- (.22)(v) (.21)(v) (.13)(v) (.11) (.11)(v) 1.96 5.43 .90 1.62 1.29 - ----------- ----------- ----------- ----------- ----------- 1.74 5.22 .77 1.51 1.18 (1.93) (.84) (.54) (.05) (.18) - ----------- ----------- ----------- ----------- ----------- $ 13.09 $ 13.28 $ 8.90 $ 8.67 $ 7.21 =========== =========== =========== =========== =========== 11.6% 63.0% 9.9% 21.0% 19.5% =========== =========== =========== =========== =========== $ 1,056,831 $ 594,971 $ 242,941 $ 212,895 $ 150,258 =========== =========== =========== =========== =========== 2.11% 2.12% 2.19% 2.27% 2.44% =========== =========== =========== =========== =========== 2.11% 2.21% 2.26% 2.38% 2.46% =========== =========== =========== =========== =========== (1.41%) (1.77%) (1.48%) (1.72%) (1.61%) =========== =========== =========== =========== =========== 132.37% 186.93% 184.07% 157.63% 162.37% =========== =========== =========== =========== =========== -- -- -- -- $ 7,700,000 =========== =========== =========== =========== =========== $ 138,087 $ 7,758,649 $ 2,814,493 $ 2,940,097 $ 239,966 =========== =========== =========== =========== =========== 97,199,509 42,330,298 29,012,853 23,217,597 14,556,858 =========== =========== =========== =========== =========== -- $ 0.18 $ 0.10 $ 0.13 $ 0.02 =========== =========== =========== =========== =========== Class C (iii) - --------------------------------------------------------------------------- Six Months Three Months Ended Year Ended October 31, Ended April 30, ------------------------------------------ October 31, 2001(iv)(vii) 2000 1999 1998 1997(iv) ============ =========== =========== =========== =========== $ 13.09 $ 13.27 $ 8.90 $ 8.67 $ 9.22 - ------------ ----------- ----------- ----------- ----------- (.05)(v) (.22)(v) (.22)(v) (.12)(v) (.02) (3.08) 1.97 5.43 .89 (.53) - ------------ ----------- ----------- ----------- ----------- (3.13) 1.75 5.21 .77 (.55) (.48) (1.93) (.84) (.54) -- - ------------ ----------- ----------- ----------- ----------- $ 9.48 $ 13.09 $ 13.27 $ 8.90 $ 8.67 ============ =========== =========== =========== =========== (24.4%) 11.7% 62.9% 9.9% (6.0%) ============ =========== =========== =========== =========== $ 134,155 $ 180,663 $ 43,789 $ 2,967 $ 631 ============ =========== =========== =========== =========== 2.13% 2.12% 2.12% 2.18% 2.18% ============ =========== =========== =========== =========== 2.13% 2.12% 2.21% 2.25% 2.25% ============ =========== =========== =========== =========== (1.01%) (1.42%) (1.80%) (1.46%) (1.80%) ============ =========== =========== =========== =========== 49.68% 132.37% 186.93% 184.07% 157.63% ============ =========== =========== =========== =========== -- -- -- -- -- ============ =========== =========== =========== =========== -- $ 138,087 $ 7,758,649 $ 2,814,493 $ 2,940,097 ============ =========== =========== =========== =========== 106,327,315 97,199,509 42,330,298 29,012,853 23,217,597 ============ =========== =========== =========== =========== -- -- $ 0.18 $ 0.10 $ 0.13 ============ =========== =========== =========== =========== THE ALGER FUND ALGER MONEY MARKET PORTFOLIO SCHEDULE OF INVESTMENTS (UNAUDITED) April 30, 2001 -28- U.S. GOVERNMENT & PRINCIPAL AGENCY OBLIGATIONS--90.5% AMOUNT VALUE ----------- ------------ Federal Farm Credit Banks, 4.50%, 5/1/01 ................................ $45,000,000 $ 45,000,000 Federal Home Loan Banks, 4.50%, 5/1/01 ................................ 48,400,000 48,400,000 4.36%, 5/7/01 ................................ 11,500,000 11,491,643 4.25%, 5/15/01 ............................... 12,500,000 12,480,816 4.17%, 6/15/01 ............................... 11,500,000 11,440,056 4.17%, 6/27/01 ............................... 12,600,000 12,516,809 4.12%, 7/18/01 ............................... 12,650,000 12,537,078 Federal National Mortgage Assoc., 4.20%, 6/4/01 ................................ 12,500,000 12,450,417 4.19%, 6/6/01 ................................ 12,500,000 12,447,625 4.13%, 7/26/01 ............................... 12,600,000 12,475,687 Federal Home Loan Mortgage Corp., 4.32%, 5/21/01 ............................... 11,500,000 11,472,400 4.23%, 5/30/01 ............................... 12,500,000 12,457,406 4.28%, 5/30/01 ............................... 12,600,000 12,556,558 4.17%, 6/19/01 ............................... 12,500,000 12,429,052 4.18%, 6/19/01 ............................... 12,600,000 12,528,313 Student Loan Marketing Assoc., 4.50%, 5/1/01 ................................ 48,000,000 48,000,000 ------------ Total Investments (Cost $300,683,860) (a) ...................... 90.5% 300,683,860 Other Assets in Excess of Liabilities .......... 9.5 31,459,929 ----- ------------ Net Assets ..................................... 100.0% $332,143,789 ===== ============ (a) At April 30, 2001, the net unrealized appreciation on investments based on cost for federal income tax purposes was the same as the cost for financial reporting purposes. See Notes to Financial Statements. THE ALGER FUND ALGER MONEY MARKET PORTFOLIO Financial Highlights For a share outstanding throughout the period -29-
Six Months Ended Year Ended October 31, April 30, ---------------------------------------------------------------- 2001(i) 2000 1999 1998 1997 1996 -------- -------- -------- -------- -------- -------- Net asset value, beginning of period ........... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 -------- -------- -------- -------- -------- -------- Net investment income .......................... .0250 .0527 .0423 .0476 .0479 .0521 Dividends from net investment income ........... (.0250) (.0527) (.0423) (.0476) (.0479) (.0521) -------- -------- -------- -------- -------- -------- Net asset value, end of period ................. $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 ======== ======== ======== ======== ======== ======== Total Return ................................... 2.5% 5.4% 4.3% 4.9% 4.9% 5.3% ======== ======== ======== ======== ======== ======== Ratios and Supplemental Data: Net assets, end of period (000's omitted) ............................. $332,144 $233,526 $241,310 $172,862 $179,407 $285,702 ======== ======== ======== ======== ======== ======== Ratio of expenses to average net assets ........ .68% .78% .72% .76% .81% .41% ======== ======== ======== ======== ======== ======== Decrease reflected in above expense ratios due to management fee waivers ...................... -- -- -- -- -- .38% ======== ======== ======== ======== ======== ======== Ratio of net investment income to average net assets ....................... 5.06% 5.14% 4.37% 4.84% 4.76% 5.18% ======== ======== ======== ======== ======== ========
(i) Unaudited. Ratios have been annualized; total return has not been annualized. See Notes to Financial Statements. -30- THE ALGER FUND STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except per share amounts) (Unaudited) April 30, 2001
Small Capital LargeCap Capital- MidCap Appre- Money Growth ization Balanced Growth ciation Market ASSETS: Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio ---------- -------- -------- -------- ---------- -------- Investments in securities, at value (identified cost*)--see accompanying schedules of investments ............................ $1,145,021 $284,671 $366,208 $723,738 $1,169,547 $300,684 Cash .................................................. 42 76 24 52 81 91 Receivable for investment securities sold ............. 12,918 13,381 2,416 18,486 11,560 -- Receivable for shares of beneficial interest sold ....................................... 3,822 238 1,020 2,970 2,047 35,652 Dividends and interest receivable .......................................... 285 8 2,046 46 342 -- Prepaid expenses ...................................... 39 50 23 17 63 78 ---------- -------- -------- -------- ---------- -------- Total Assets .......................................... 1,162,127 298,424 371,737 745,309 1,183,640 336,505 ---------- -------- -------- -------- ---------- -------- LIABILITIES: Payable for securities loaned ......................... 21,093 -- 1,078 -- 40,789 -- Payable for investment securities purchased ................................ -- 11,195 18,457 1,644 -- -- Payable for shares of beneficial interest redeemed ................................... 7,526 5,771 274 16,426 7,287 4,001 Accrued investment management fees .................... 639 184 203 430 733 141 Accrued distribution fees ............................. 483 115 131 316 518 -- Accrued shareholder servicing fees .................... 213 54 68 134 216 -- Dividends payable--Note 2(e) .......................... -- -- -- -- -- 72 Accrued expenses ...................................... 477 223 139 328 541 147 ---------- -------- -------- -------- ---------- -------- Total Liabilities ................................... 30,431 17,542 20,350 19,278 50,084 4,361 ---------- -------- -------- -------- ---------- -------- NET ASSETS ............................................ $1,131,696 $280,882 $351,387 $726,031 $1,133,556 $332,144 ========== ======== ======== ======== ========== ======== Net Assets Consist of: Paid-in capital ..................................... $1,171,027 $400,854 $359,436 $712,961 $1,482,794 $332,479 Undistributed net investment income (accumulated loss) ......................... (15,865) (9,985) 1,873 (9,702) (23,939) -- Undistributed net realized gain (accumulated loss) ........................... (47,350) (104,467) (12,705) (56,397) (273,146) (335) Net unrealized appreciation (depreciation) .......... 23,884 (5,520) 2,783 79,169 (52,153) -- ---------- -------- -------- -------- ---------- -------- NET ASSETS ............................................ $1,131,696 $280,882 $351,387 $726,031 $1,133,556 $332,144 ========== ======== ======== ======== ========== ======== Class A Net Asset Value Per Share .......................... $ 11.57 $ 4.54 $ 20.07 $ 7.96 $ 9.85 -- ========== ======== ======== ======== ========== ======== Offering Price Per Share ........................... $ 12.15 $ 4.77 $ 21.07 $ 8.36 $ 10.34 -- ========== ======== ======== ======== ========== ======== Class B Net Asset Value and Offering Price Per Share .......................... $ 11.07 $ 4.32 $ 19.60 $ 7.59 $ 9.48 $ 1.00 ========== ======== ======== ======== ========== ======== Class C Net Asset Value Per Share ........................... $ 11.06 $ 4.32 $ 19.68 $ 7.57 $ 9.48 -- ========== ======== ======== ======== ========== ======== Offering Price Per Share ............................ $ 11.17 $ 4.36 $ 19.88 $ 7.65 $ 9.58 -- ========== ======== ======== ======== ========== ======== Shares of beneficial interest outstanding--Note 6 Class A ............................................. 24,529 19,251 6,193 20,071 23,102 -- ========== ======== ======== ======== ========== ======== Class B ............................................. 70,916 43,252 8,558 67,105 81,381 332,479 ========== ======== ======== ======== ========== ======== Class C ............................................. 5,672 1,543 3,015 7,537 14,153 -- ========== ======== ======== ======== ========== ======== *Identified cost ...................................... $1,121,137 $290,191 $363,425 $644,569 $1,221,700 $300,684 ========== ======== ======== ======== ========== ========
See Notes to Financial Statements. -31- THE ALGER FUND STATEMENTS of operations (in thousands) (Unaudited) For the six months ended April 30, 2001
Small Capital LargeCap Capital- MidCap Appre- Money Growth ization Balanced Growth ciation Market INVESTMENT INCOME: Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio ---------- -------- -------- -------- ---------- -------- Income: Dividends ........................................... $ 4,177 $ 103 $ 581 $ 211 $ 3,680 $ -- Interest ............................................ 1,521 1,127 4,701 2,309 3,187 9,962 ---------- -------- -------- -------- ---------- -------- Total Income ........................................ 5,698 1,230 5,282 2,520 6,867 9,962 ---------- -------- -------- -------- ---------- -------- Expenses: Management fees--Note 3(a) .......................... 4,157 1,380 1,139 2,703 5,220 867 Distribution fees--Note 3(b): Class B ........................................... 2,937 878 540 1,834 3,131 -- Class C ........................................... 227 30 197 193 547 -- Shareholder servicing fees--Note 3(f) ............... 1,386 406 380 845 1,535 -- Interest on line of credit utilized--Note 5 ......... 5 -- -- 1 -- -- Custodian fees ...................................... 49 25 21 32 57 14 Transfer agent fees and expenses--Note 3(e) ............................... 1,251 480 222 702 1,515 255 Professional fees ................................... 25 10 6 16 21 5 Trustees' fees ...................................... 4 4 4 4 4 4 Registration fees ................................... 49 50 35 89 20 9 Miscellaneous ....................................... 105 39 20 74 72 33 ---------- -------- -------- -------- ---------- -------- Total Expenses ...................................... 10,195 3,302 2,564 6,493 12,122 1,187 ---------- -------- -------- -------- ---------- -------- NET INVESTMENT INCOME (LOSS) ....................................... (4,497) (2,072) 2,718 (3,973) (5,255) 8,775 ---------- -------- -------- -------- ---------- -------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized loss on investments ...................... (36,150) (104,060) (11,608) (52,743) (251,333) (256) Net change in unrealized appreciation (depreciation) on investments ....................... (101,703) (30,642) (4,542) (17,246) (119,434) -- ---------- -------- -------- -------- ---------- -------- Net realized and unrealized loss on investments ................................. (137,853) (134,702) (16,150) (69,989) (370,767) (256) ---------- -------- -------- -------- ---------- -------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .......................................... $ (142,350) $(136,774) $(13,432) $(73,962) $ (376,022) $ 8,519 ========== ======== ======== ======== ========== ========
See Notes to Financial Statements. -32- THE ALGER FUND STATEMENTS OF CHANGES IN NET ASSETS (in thousands) (Unaudited) For the six months ended April 30, 2001
Small Capital LargeCap Capital- MidCap Appre- Money Growth ization Balanced Growth ciation Market INVESTMENT INCOME: Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio ---------- -------- -------- -------- ---------- -------- Net investment income (loss) ........................... $ (4,497) $ (2,072) $ 2,718 $ (3,973) $ (5,255) $ 8,775 Net realized loss on investments ....................... (36,150) (104,060) (11,608) (52,743) (251,333) (256) Net change in unrealized appreciation (depreciation) on investments ........................ (101,703) (30,642) (4,542) (17,246) (119,434) -- ---------- -------- -------- -------- ---------- -------- Net increase (decrease) in net assets resulting from operations .......................... (142,350) (136,774) (13,432) (73,962) (376,022) 8,519 ---------- -------- -------- -------- ---------- -------- Dividends and distributions to shareholders from: Net investment income Class A .............................................. -- -- (1,065) -- -- -- Class B .............................................. -- -- (1,254) -- -- (8,775) Class C .............................................. -- -- (441) -- -- -- Net realized gains Class A .............................................. (18,355) (20,030) -- (14,320) (10,161) -- Class B .............................................. (60,776) (67,405) -- (64,744) (37,779) -- Class C .............................................. (4,659) (2,276) -- (6,442) (6,592) -- ---------- -------- -------- -------- ---------- -------- Total dividends and distributions to shareholders ...... (83,790) (89,711) (2,760) (85,506) (54,532) (8,775) ---------- -------- -------- -------- ---------- -------- Increase (decrease) from shares of beneficial interest transactions: Class A .............................................. 7,825 29,132 35,945 43,566 (53,982) -- Class B .............................................. 48,390 28,841 43,496 98,698 9,594 98,874 Class C .............................................. 9,507 1,244 12,752 17,866 4,708 -- ---------- -------- -------- -------- ---------- -------- Net increase (decrease) from shares of beneficial interest transactions--Note 6 ....................... 65,722 59,217 92,193 160,130 (39,680) 98,874 ---------- -------- -------- -------- ---------- -------- Total increase (decrease) ........................... (160,418) (167,268) 76,001 662 (470,234) 98,618 Net Assets: Beginning of period ................................ 1,292,114 448,150 275,386 725,369 1,603,790 233,526 ---------- -------- -------- -------- ---------- -------- End of period ...................................... $1,131,696 $280,882 $351,387 $726,031 $1,133,556 $332,144 ========== ======== ======== ======== ========== ======== Undistributed net investment income (accumulated loss) ............................ $ (15,865) $ (9,985) $ 1,873 $ (9,702) $ (23,939) $ -- ========== ======== ======== ======== ========== ========
See Notes to Financial Statements. -33- THE ALGER FUND STATEMENTS OF CHANGES IN NET ASSETS (in thousands) For the year ended October 31, 2000
Small Capital LargeCap Capital- MidCap Appre- Money Growth ization Balanced Growth ciation Market Portfolio* Portfolio Portfolio Portfolio Portfolio Portfolio ---------- -------- -------- -------- ---------- -------- Net investment income (loss) ........................... $ (11,368) $ (7,913) $ 1,915 $ (5,729) $ (18,684) $ 15,930 Net realized gain (loss) on investments ................ 82,649 92,099 (924) 84,452 39,348 (3) Net change in unrealized appreciation (depreciation) on investments ........................ (5,654) (83,423) 1,906 71,287 (49,790) -- ---------- -------- -------- -------- ---------- -------- Net increase (decrease) in net assets resulting from operations .......................... 65,627 763 2,897 150,010 (29,126) 15,927 ---------- -------- -------- -------- ---------- -------- Dividends and distributions to shareholders from: Net investment income Class A .............................................. -- -- (85) -- -- -- Class B .............................................. -- -- (118) -- -- (15,930) Class C .............................................. -- -- (24) -- -- -- Net realized gains Class A ............................................. (38,393) (9,118) (1,018) (7,104) (24,442) -- Class B .............................................. (136,938) (73,991) (4,386) (47,287) (91,441) -- Class C .............................................. (6,306) (1,539) (1,265) (2,332) (7,820) -- ---------- -------- -------- -------- ---------- -------- Total dividends and distributions to shareholders ...... (181,637) (84,648) (6,896) (56,723) (123,703) (15,930) ---------- -------- -------- -------- ---------- -------- Increase (decrease) from shares of beneficial interest transactions: Class A .............................................. 120,024 56,656 82,915 74,593 248,964 -- Class B .............................................. 216,520 (28,373) 81,066 212,448 556,754 (7,781) Class C .............................................. 40,873 6,265 35,683 36,829 164,212 -- ---------- -------- -------- -------- ---------- -------- Net increase (decrease) from shares of beneficial interest transactions--Note 6 ........................ 377,417 34,548 199,664 323,870 969,930 (7,781) ---------- -------- -------- -------- ---------- -------- Total increase (decrease) ........................... 261,407 (49,337) 195,665 417,157 817,101 (7,784) Net Assets: Beginning of year .................................. 1,030,707 497,487 79,721 308,212 786,689 241,310 ---------- -------- -------- -------- ---------- -------- End of year ........................................ $1,292,114 $448,150 $275,386 $725,369 $1,603,790 $233,526 ========== ======== ======== ======== ========== ======== Undistributed net investment income (accumulated loss) ............................ $ (11,368) $ (7,913) $ 1,915 $ (5,729) $ (18,684) $ -- ========== ======== ======== ======== ========== ========
* Prior to September 29, 2000, the Alger LargeCap Growth Portfolio was the Alger Growth Portfolio. See Notes to Financial Statements. -34- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1 -- General: The Alger Fund (the "Fund") is a diversified, open-end registered investment company organized as a business trust under the laws of the Commonwealth of Massachusetts. The Fund operates as a series company currently issuing an unlimited number of shares of beneficial interest in six portfolios--LargeCap Growth Portfolio, Small Capitalization Portfolio, Balanced Portfolio, MidCap Growth Portfolio, Capital Appreciation Portfolio and Money Market Portfolio (the "Portfolios"). The LargeCap Growth Portfolio, Small Capitalization Portfolio, MidCap Growth Portfolio and Capital Appreciation Portfolio normally invest primarily in equity securities and each has an investment objective of long-term capital appreciation. The Balanced Portfolio's investment objectives are current income and long-term capital appreciation which it seeks to achieve through investing in equity and fixed income securities. The Money Market Portfolio's investment objective is high current income which it seeks to achieve by investing in short-term instruments. Each Portfolio, other than the Money Market Portfolio, offers Class A, Class B and Class C shares. Class A and Class C shares were first offered on January 1, 1997 and August 1, 1997, respectively. Class A shares are generally subject to an initial sales charge while Class B shares are generally subject to a deferred sales charge. Class C shares are generally subject to an initial sales charge and a deferred sales charge. Class B shares will automatically convert to Class A shares eight years after the end of the calendar month in which the order to purchase was accepted. The conversion is completed without the imposition of any sales charges or other fees. Each class has identical rights to assets and earnings except that only Class B and Class C shares have plans of distribution and bear the related expenses. NOTE 2 -- Significant Accounting Policies: (a) INVESTMENT VALUATION: Investments of the Portfolios, other than the Money Market Portfolio, are valued on each day the NewYork Stock Exchange (the "NYSE") is open as of the close of the NYSE (normally 4:00 p.m. Eastern time). Listed and unlisted securities for which such information is regularly reported are valued at the last reported sales price or, in the absence of reported sales, at the mean between the bid and asked price or, in the absence of a recent bid or asked price, the equivalent as obtained from one or more of the major market makers for the securities to be valued. Securities for which market quotations are not readily available are valued at fair value, as determined in good faith pursuant to procedures established by the Board of Trustees. The investments of the Money Market Portfolio, and short-term securities held by the other Portfolios having a remaining maturity of sixty days or less, are valued at amortized cost which approximates market value. Shares of mutual funds are valued at the net asset value of the underlying mutual fund. (b) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income is recognized on the accrual basis. (c) REPURCHASE AGREEMENTS: The Portfolios enter into repurchase agreements with approved institutions. The repurchase agreements are collateralized by U.S. Government securities, which are either received and held in physical possession by the custodian or received by such custodian in book-entry form through the Federal Reserve book-entry system. The collateral is valued on a daily basis during the term of the agreement to ensure that its value equals or exceeds the agreed-upon repurchase price to be repaid to the Portfolio. Additional collateral is obtained when necessary. (d) LENDING OF PORTFOLIO SECURITIES: The Portfolios lend their securities to financial institutions, provided that the market value of the securities loaned will not at any time exceed one third of the Portfolio's total assets, as defined. The Portfolios earn fees on the securities loaned, which -35- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) are included in interest income in the accompanying Statements of Operations. In order to protect against the risk of failure by the borrower to return the securities loaned or any delay in the delivery of such securities, the loan is collateralized by cash, letters of credit or U.S. Government securities that are maintained in an amount equal to at least 100 percent of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Portfolios and any required additional collateral is delivered to the Portfolios on the next business day. At April 30, 2001, the value of securities loaned and collateral received thereon were as follows: Value of Securities Value of Loaned Collateral ----------- ----------- LargeCap Growth Portfolio .................... $21,093,157 $21,545,883 Small Capitalization Portfolio .................................. 6,814,184 7,738,558 Balanced Portfolio ........................... 1,078,400 1,119,960 MidCap Growth Portfolio .................................. 22,884,912 22,992,947 Capital Appreciation Portfolio .................................. 40,788,917 40,739,418 Money Market Portfolio .................................. -- -- (e) DIVIDENDS TO SHAREHOLDERS: Dividends payable to shareholders are recorded on the ex-dividend date. The Money Market Portfolio declares dividends daily from net investment income; such dividends are paid monthly. The dividends from net investment income of the other Portfolios are declared and paid annually. With respect to all Portfolios, dividends from net realized gains, offset by any loss carryforward, are declared and paid annually after the end of the fiscal year in which earned. Each class is treated separately in determining the amounts of dividends of net investment income and distributions of capital gains payable to holders of its shares. The characterization of distributions to shareholders for financial reporting purposes is determined in accordance with federal income tax rules. Therefore, the source of the Portfolios' distributions, other than the Money Market Portfolio, may be shown in the accompanying financial statements as either from or in excess of net investment income or net realized gain on investment transactions, or from paid-in capital, depending on the type of book/tax differences that may exist. (f) FEDERAL INCOME TAXES: It is each Portfolio's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income to its shareholders. Provided a Portfolio maintains such compliance, no federal income tax provision is required. Each Portfolio is treated as a separate entity for the purpose of determining such compliance. At April 30, 2001, the net capital loss carryforwards of the Money Market Portfolio which may be used to offset future net realized gains were approximately $75,000, and expire between 2001 and 2007. (g) ALLOCATION METHODS: The Fund accounts separately for the assets, liabilities and operations of each Portfolio. Expenses directly attributable to each Portfolio are charged to that Portfolio's operations; expenses which are applicable to all Portfolios are allocated among them. Income, realized and unrealized gains and losses, and expenses of each Portfolio, other than the Money Market Portfolio, are allocated among the Portfolio's classes based on relative net assets, with the exception of distribution fees, which are only applicable to Class B and Class C shares. (h) OTHER: These financial statements have been prepared using estimates and assumptions that affect the reported amounts therein. Actual results may differ from those estimates. NOTE 3 -- Investment Management Fees and Other Transactions with Affiliates: (a) INVESTMENT MANAGEMENT FEES: Fees incurred by each Portfolio, pursuant to the provisions of its Investment Management Agreement with Fred Alger Management, Inc. ("Alger Management"), are payable monthly and are computed based on the value of the -36- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) average daily net assets of each Portfolio at the following annual rates: LargeCap Growth Portfolio .......................................... .75% Small Capitalization Portfolio ..................................... .85 Balanced Portfolio ................................................. .75 MidCap Growth Portfolio ............................................ .80 Capital Appreciation Portfolio ..................................... .85 Money Market Portfolio ............................................. .50 (b) DISTRIBUTION FEES: Class B Shares--The Fund has adopted an Amended and Restated Plan of Distribution pursuant to which Class B shares of each Portfolio, other than the Money Market Portfolio, reimburse Fred Alger & Company, Incorporated, the Fund's distributor (the "Distributor"), for costs and expenses incurred by the Distributor in connection with advertising, marketing and selling the Class B shares. The distribution fee is not to exceed an annual rate of .75% of the respective average daily net assets of the Class B shares of the designated Portfolios. If in any month, the costs incurred by the Distributor relating to the Class B shares are in excess of the distribution fees charged to the Class B shares of the Portfolios, the excess may be carried forward, with interest, and sought to be reimbursed in future periods. As of April 30, 2001, such excess carried forward was approximately $21,447,000, $15,851,000, $4,754,000, $8,192,000 and $29,137,000 for Class B shares of the LargeCap Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, and the Capital Appreciation Portfolio, respectively. Contingent deferred sales charges imposed on redemptions of Class B shares will reduce the amount of distribution expenses for which reimbursement may be sought. See Note 3(c) below. Class C Shares--The Fund has adopted a Distribution Plan pursuant to which Class C shares of each Portfolio, other than the Money Market Portfolio, pay the Distributor a fee at the annual rate of .75% of the respective average daily net assets of the Class C shares of the designated Portfolios to compensate the Distributor for its activities and expenses incurred in distributing the Class C shares. The fees charged may be more or less than the expenses incurred by the Distributor. (c) SALES CHARGES: The purchases and sales of shares of the Portfolios, other than the Money Market Portfolio, may be subject to initial sales charges or contingent deferred sales charges. For the six months ended April 30, 2001, the initial sales charges and contingent deferred sales charges retained by the Distributor were approximately $61,000 and $4,916,000, respectively. The contingent deferred sales charges are used by the Distributor to offset distribution expenses previously incurred. Sales charges do not represent expenses of the Fund. (d) BROKERAGE COMMISSIONS: During the six months ended April 30, 2001, the LargeCap Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio and the Capital Appreciation Portfolio paid the Distributor commissions of $897,673, $332,933, $130,058, $478,551 and $834,713, respectively, in connection with securities transactions. (e) TRANSFER AGENT FEES AND EXPENSES: Alger Shareholder Services, Inc. ("Alger Services"), an affiliate of Alger Management, serves as transfer agent for the Fund. -37- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) During the six months ended April 30, 2001, the LargeCap Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, the Capital Appreciation Portfolio and the Money Market Portfolio incurred fees of $840,820, $471,850, $167,155, $517,960, $1,297,750 and $189,640, respectively, for services provided by Alger Services. In addition, during the six months ended April 30, 2001, the LargeCap Growth Portfolio, the Small Capitalization Portfolio, the Balanced Portfolio, the MidCap Growth Portfolio, the Capital Appreciation Portfolio and the Money Market Portfolio reimbursed Alger Services $410,002, $8,065, $55,205, $183,853, $217,627 and $65,341, respectively, for transfer agent related expenses paid by Alger Services on behalf of the Portfolios. (f) SHAREHOLDER SERVICING FEES: The Fund has entered into a shareholder servicing agreement with the Distributor whereby the Distributor provides each Portfolio, other than the Money Market Portfolio, with ongoing servicing of shareholder accounts. As compensation for such services, each designated Portfolio pays the Distributor a monthly fee at an annual rate equal to .25% of each Portfolio's average daily net assets. (g) OTHER TRANSACTIONS WITH AFFILIATES: Certain trustees and officers of the Fund are directors and officers of Alger Management, the Distributor and Alger Services. NOTE 4 -- Securities Transactions: The following summarizes the securities transactions by the Fund, other than short-term securities, for the six months ended April 30, 2001 (in thousands): Purchases Sales ------------ ------------ LargeCap Growth Portfolio ................................ $552,374,843 $500,527,532 Small Capitalization Portfolio ................................ 264,706,795 267,064,432 Balanced Portfolio ......................... 199,353,083 92,607,571 MidCap Growth Portfolio ................................ 414,922,972 299,047,783 Capital Appreciation Portfolio ................................ 624,927,822 577,148,895 NOTE 5 -- Lines of Credit: The Fund has both committed and uncommitted lines of credit with banks. All borrowings have variable interest rates and are payable on demand. With the exception of the Capital Appreciation Portfolio, the Fund borrows under such lines of credit exclusively for temporary or emergency purposes. The Capital Appreciation Portfolio may borrow under these lines up to 1/3 of the value of its assets, as defined, to purchase additional securities. To the extent the Capital Appreciation Portfolio borrows under these lines, it must pledge securities with a total value of at least twice the amount borrowed. For the six months ended April 30, 2001, the Capital Appreciation Portfolio had no such borrowings. -38- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) NOTE 6 -- Share Capital: The Fund has an unlimited number of authorized shares of beneficial interest of $.001 par value which are presently divided into six series. Each series, other than the Money Market Portfolio, is divided into three separate classes. The transactions of shares of beneficial interest were as follows:
For the six months ended For the year ended April 30, 2001 October 31, 2000 Shares Amount Shares Amount ----------- --------------- ------------ --------------- Alger LargeCap Growth Portfolio Class A: Shares sold .......................... 85,555,756 $ 1,015,461,248 162,449,155 $ 2,482,401,072 Shares converted from Class B ........ 948,444 11,065,976 1,743,049 26,577,277 Dividends reinvested ................. 1,455,788 17,178,299 2,500,745 35,785,660 Shares redeemed ...................... (86,428,455) (1,035,880,631) (158,493,375) (2,424,739,451) ----------- --------------- ------------ --------------- Net increase ......................... 1,531,533 $ 7,824,892 8,199,574 $ 120,024,558 =========== =============== ============ =============== Class B: Shares sold .......................... 58,762,259 $ 663,872,085 207,051,376 $ 3,059,360,172 Dividends reinvested ................. 5,101,144 57,744,954 9,240,884 128,263,469 Shares converted to Class A .......... (990,445) (11,065,976) (1,801,857) (26,577,277) Shares redeemed ...................... (58,405,648) (662,160,454) (199,088,996) (2,944,526,617) ----------- --------------- ------------ --------------- Net increase ......................... 4,467,310 $ 48,390,609 15,401,407 $ 216,519,747 =========== =============== ============ =============== Class C: Shares sold .......................... 1,662,696 $ 19,048,923 6,077,592 $ 89,824,465 Dividends reinvested ................. 395,810 4,476,606 439,173 6,091,330 Shares redeemed ...................... (1,242,221) (14,018,651) (3,749,529) (55,042,716) ----------- --------------- ------------ --------------- Net increase ......................... 816,285 $ 9,506,878 2,767,236 $ 40,873,079 =========== =============== ============ =============== Alger Small Capitalization Portfolio Class A: Shares sold .......................... 75,251,603 $ 393,760,200 61,143,690 $ 634,356,124 Shares converted from Class B ........ 3,796,355 19,606,281 5,197,378 53,753,929 Dividends reinvested ................. 3,184,639 17,611,053 760,113 7,654,340 Shares redeemed ...................... (75,650,393) (401,845,765) (61,193,895) (639,108,096) ----------- --------------- ------------ --------------- Net increase ......................... 6,582,204 $ 29,131,769 5,907,286 $ 56,656,297 =========== =============== ============ =============== Class B: Shares sold .......................... 6,392,985 $ 30,592,682 45,801,106 $ 475,351,587 Dividends reinvested ................. 12,370,011 65,313,656 7,118,807 69,835,497 Shares converted to Class A .......... (3,977,294) (19,606,281) (5,353,313) (53,753,929) Shares redeemed ...................... (9,725,872) (47,458,678) (50,806,572) (519,806,493) ----------- --------------- ------------ --------------- Net increase (decrease) .............. 5,059,830 $ 28,841,379 (3,239,972) $ (28,373,338) =========== =============== ============ =============== Class C: Shares sold .......................... 149,417 $ 768,846 1,523,544 $ 16,682,243 Dividends reinvested ................. 401,376 2,119,264 144,825 1,419,283 Shares redeemed ...................... (310,301) (1,644,610) (1,122,291) (11,836,447) ----------- --------------- ------------ --------------- Net increase ......................... 240,492 $ 1,243,500 546,078 $ 6,265,079 =========== =============== ============ ===============
-39- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
For the six months ended For the year ended April 30, 2001 October 31, 2000 Shares Amount Shares Amount ----------- ------------- ------------ --------------- Alger Balanced Portfolio Class A: Shares sold ...................... 3,221,018 $ 64,322,643 4,565,490 $ 99,530,708 Shares converted from Class B .... 35,384 709,073 71,386 1,557,011 Dividends reinvested ............. 50,567 1,011,849 50,553 1,040,369 Shares redeemed .................. (1,514,520) (30,098,192) (882,695) (19,213,016) ----------- ------------- ------------ --------------- Net increase ..................... 1,792,449 $ 35,945,373 3,804,734 $ 82,915,072 =========== ============= ============ =============== Class B: Shares sold ...................... 4,174,024 $ 81,628,134 8,075,884 $ 173,063,380 Dividends reinvested ............. 59,494 1,166,087 208,439 4,227,147 Shares converted to Class A ...... (36,179) (709,073) (72,703) (1,557,011) Shares redeemed .................. (1,982,654) (38,588,796) (4,422,449) (94,667,065) ----------- ------------- ------------ --------------- Net increase ..................... 2,214,685 $ 43,496,352 3,789,171 $ 81,066,451 =========== ============= ============ =============== Class C: Shares sold ...................... 1,128,142 $ 22,277,587 1,898,378 $ 40,718,761 Dividends reinvested ............. 20,669 406,567 54,299 1,104,984 Shares redeemed .................. (506,774) (9,932,365) (288,169) (6,141,241) ----------- ------------- ------------ --------------- Net increase ..................... 642,037 $ 12,751,789 1,664,508 $ 35,682,504 =========== ============= ============ =============== Alger MidCap Growth Portfolio Class A:* Shares sold ...................... 90,079,147 $ 733,595,565 145,344,275 $ 1,400,353,840 Shares converted from Class B .... 628,251 5,085,425 1,036,760 9,984,433 Dividends reinvested ............. 1,711,048 13,585,724 869,019 6,856,558 Shares redeemed .................. (86,272,707) (708,700,690) (139,332,954) (1,342,601,390) ----------- ------------- ------------ --------------- Net increase ..................... 6,145,739 $ 43,566,024 7,917,100 $ 74,593,441 =========== ============= ============ =============== Class B:* Shares sold ...................... 32,162,839 $ 255,939,045 54,409,817 $ 511,828,795 Dividends reinvested ............. 7,947,406 60,320,808 5,616,424 42,984,366 Shares converted to Class A ...... (657,469) (5,085,425) (1,072,154) (9,984,433) Shares redeemed .................. (26,764,183) (212,476,442) (35,562,632) (332,380,942) ----------- ------------- ------------ --------------- Net increase ..................... 12,688,593 $ 98,697,986 23,391,455 $ 212,447,786 =========== ============= ============ =============== Class C:* Shares sold ...................... 3,352,492 $ 26,673,752 5,308,692 $ 50,459,581 Dividends reinvested ............. 812,983 6,162,412 284,495 2,173,537 Shares redeemed .................. (1,884,361) (14,970,285) (1,693,505) (15,804,677) ----------- ------------- ------------ --------------- Net increase ..................... 2,281,114 $ 17,865,879 3,899,682 $ 36,828,441 =========== ============= ============ ===============
-40- THE ALGER FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
For the six months ended For the year ended April 30, 2001 October 31, 2000 Shares Amount Shares Amount --------------- --------------- --------------- ---------------- Alger Capital Appreciation Portfolio Class A: Shares sold ......................... 85,940,822 $ 934,030,639 167,135,442 $ 2,628,765,000 Shares converted from Class B ....... 372,245 3,820,559 910,674 14,344,012 Dividends reinvested ................ 877,332 9,791,019 1,559,442 23,422,814 Shares redeemed ..................... (91,138,661) (1,001,624,572) (153,453,836) (2,417,567,657) --------------- --------------- --------------- ---------------- Net increase (decrease) .............. (3,948,262) $ (53,982,355) 16,151,722 $ 248,964,169 =============== =============== =============== ================ Class B: Shares sold ......................... 41,146,591 $ 445,357,735 137,803,098 $ 2,111,394,871 Dividends reinvested ................ 3,314,857 35,701,014 5,932,840 86,797,445 Shares converted to Class A ......... (386,252) (3,820,559) (937,583) (14,344,012) Shares redeemed ..................... (43,414,205) (467,644,597) (106,892,604) (1,627,094,311) --------------- --------------- --------------- ---------------- Net increase ........................ 660,991 9,593,593 35,905,751 $ 556,753,993 =============== =============== =============== ================ Class C: Shares sold .......................... 6,232,843 $ 64,841,304 16,104,072 $ 247,401,803 Dividends reinvested ................. 575,854 6,196,182 498,863 7,293,385 Shares redeemed ...................... (6,459,892) (66,329,063) (6,097,998) (90,483,748) --------------- --------------- --------------- ---------------- Net increase ........................ 348,805 $ 4,708,423 10,504,937 $ 164,211,440 =============== =============== =============== ================ Alger Money Market Portfolio Shares sold .......................... $ 4,087,454,784 $ 4,087,454,784 11,125,335,270 $ 11,125,335,270 Dividends reinvested ................. 7,224,598 7,224,598 12,394,274 12,394,274 Shares redeemed ...................... (3,995,805,490) (3,995,805,490) (11,145,511,173) (11,145,511,173) --------------- --------------- --------------- ---------------- Net increase (decrease) ............. 98,873,892 $ 98,873,892 (7,781,629) $ (7,781,629) =============== =============== =============== ================
- ---------- * Adjusted to reflect the effect of a 3 for 1 stock split which occurred on April 20, 2000. [This page intentionally left blank] [This page intentionally left blank] THE ALGER FUND 1 World Trade Center Suite 9333 New York, N.Y. 10048 (800) 992-3863 www.algerfund.com BOARD OF TRUSTEES Fred M. Alger, Chairman David D. Alger Charles F. Baird, Jr. Roger P. Cheever Lester L. Colbert, Jr. James P. Connelly, Jr. Stephen E. O'Neil Nathan E. Saint-Amand B. Joseph White INVESTMENT MANAGER Fred Alger Management, Inc. 1 World Trade Center Suite 9333 New York, N.Y. 10048 DISTRIBUTOR Fred Alger & Company, Incorporated 30 Montgomery Street Jersey City, N.J. 07302 TRANSFER AGENT Alger Shareholder Services, Inc. 30 Montgomery Street Jersey City, N.J. 07302 This report is submitted for the general information of the shareholders of The Alger Fund. It is not authorized for distribution to prospective investors unless accompanied by an effective Prospectus for the Fund, which contains information concerning the Fund's investment policies, fees and expenses as well as other pertinent information. REP41 THE ALGER FUND SEMI-ANNUAL REPORT APRIL 30, 2001 (UNAUDITED) ALGER LARGECAP GROWTH PORTFOLIO ALGER SMALL CAPITALIZATION PORTFOLIO ALGER BALANCED PORTFOLIO ALGER MIDCAP GROWTH PORTFOLIO ALGER CAPITAL APPRECIATION PORTFOLIO ALGER MONEY MARKET PORTFOLIO [LOGO OMITTED] -----END PRIVACY-ENHANCED MESSAGE-----